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The owner of a U.S. company that produces sound systems for home entertainment theaters is considering...

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Finance

The owner of a U.S. company that produces sound systems for homeentertainment theaters is considering the establishment of anAustralian-based company to produce and sell the systems there. Heis being told that the production costs would be one third the costof producing them in the United States. Considering the economicfactors, is this a good strategy that you could recommend to theowner?

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In order to decide whether the owner of the US Company should produce and sell sound systems of home entertainment theaters in Australia or not heshe will have to first analyse the market The    See Answer
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Transcribed Image Text

The owner of a U.S. company that produces sound systems for homeentertainment theaters is considering the establishment of anAustralian-based company to produce and sell the systems there. Heis being told that the production costs would be one third the costof producing them in the United States. Considering the economicfactors, is this a good strategy that you could recommend to theowner?

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