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Considering expanding to longwalkistan

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Happy Feet, a USA company that makes shoes, is considering expanding to Longwalkistan. They would like to sell shoes there and in surrounding countries. Demand for shoes in Longwalkistan is high. Shoes made in Happy Feet's factory in Ohio are subject to import tariffs in Longwalkistan, which would make them less affordable and would reduce Happy Feet's profit. Shoes made in Longwalkistan are not subject to import tariffs. Happy Feet is willing to make a large investment, proceed slowly, and take risks in exchange for full control of its operations.

Reference no: EM133575350

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