Multiple Choice
Suppose that Samsung's production costs are the same in both China and India.Also suppose that Samsung can produce cellphones in China for an average cost of $10 per phone for 300 million phones, $12 per phone for 200 million phones, and $15 per phone for 100 million phones.If customers in India demand 100 million phones and customers in China demand 200 million phones, Samsung's lowest cost option is to
A) produce phones only in India and export phones to China.
B) produce phones only in China and export phones to India.
C) produce 100 million phones in India for Indian demand and produce 200 million phones in China for Chinese demand.
D) produce 150 million phones in India for Indian demand and 50 million to export to China and produce 150 million phones in China for Chinese demand.
Correct Answer:

Verified
Correct Answer:
Verified
Q115: Figure 9.1 illustrates the market conditions facing
Q116: Multinational enterprises face problems since they<br>A) cannot
Q117: Figure 9.2 represents the U.S. labor market.
Q118: Multinational enterprises may provide benefits to their
Q119: Foreign direct investment would occur if Microsoft
Q121: What particular aspects of multinational operations generate
Q122: Concerning the decision of a U.S.resident to
Q123: Mergers differ from joint ventures in that
Q124: A U.S.firm is deciding on whether or
Q125: Horizontal integration would occur if General Motors