Global Business Today 6th Edition by Charles Hill

Exercise 8

An electronics firm is considering how best to supply the world market for microprocessors used in consumer and industrial electronic products.A manufacturing plant costs approximately $500 million to construct and requires a highly skilled work force.The total value of the world market for this product over the next 10 years is estimated to be between $10 and $15 billion.The tariffs prevailing in this industry are currently low.Should the firm adopt a concentrated or decentralized manufacturing strategy? What kind of location(s)should the firm favor for its plant(s)