Suppose a Company in the United States Was Trying to Decide

Essay

Suppose a company in the United States was trying to decide whether to locate their manufacturing facility in the United States or in Southeast Asia.Consider the following information in answering the question below:
•Presently, this US company, which makes only one type of finished good, sells 40% of their product in the United States, 10% of the product in Mexico, 15% of their product in Canada, and 35% of their product to the rest of the world.
•The product this company produces is presently tariffed heavily when imported into the United States.
•The product consists of about 150 components of which 75 components are imported from Southeast Asia, 40 components are imported from Mexico, and 35 components come from US suppliers.
List four reasons why it would be favorable to locate the new manufacturing facility in the United States rather than in Southeast Asia.