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(a) Bronco Corp. has decided to establish a subsidiary in Taiwan that will produce stereos and sell them there. It expects that its cost of producing these stereos will be one third the cost of producing them in the United States. Assuming that its production cost estimates are accurate, is Bronco's strategy sensible? Explain.

(b) Once an MNC establishes a subsidiary, DFI remains an ongoing decision. What does this statement mean?

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Financial Management, Finance

Category:- Financial Management
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