Decision of where to produce the different components


Problem:

Question 1: What criteria drove Amazon's decision of where to produce the different components that go into the kindle? Were these the right criteria?

Question 2: Some have argued that the fact that only $40-$50 of the value associated with manufacturing the Kindle goes to US companies is the sign of the decline of American competiveness. Do you agree with this assessment?

Question 3: If Amazon had decided to design and manufacture the kindle and all its components in the US, what do you think the consequences would have been for Amazon?

Explain in detail and also show your all workings.

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Finance Basics: Decision of where to produce the different components
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