Which country seems a preferable choice for your company

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Reference no: EM133402041

Questions: Two years later still, you work for a company that is considering expanding its sales and production into either Baconia or its neighboring country, FrenchToastia. The company ultimately wants to locate in a country that is most conducive to economic growth.
a. One of your coworkers mentions that Baconia is vulnerable since it has a robust international trade sector and that new industries are frequently rendering older industries obsolete, leading to some unemployment. FrenchToastia, on the other hand, does not trade much with foreign countries and has government support programs for established industries and businesses. Given this information, which country seems a preferable choice for your company?

b. Recently, Baconia has increased the size of its government and regulations and has adopted import quotas to limit foreign competition; at the same time, FrenchToastia has reformed its judicial system to better enforce property rights, and its central bank has vowed to keep inflation in check. Based on this information alone (ignore the information in part a), which country seems a preferable choice for your company?

Reference no: EM133402041

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