Establishing a manufacturing plant in central asia, Financial Econometrics

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Establishing a manufacturing plant in central asia

Response to the following problem:

Effects of September 11

In August 2001, Ohio, Inc., considered establishing a manufacturing plant in central Asia, which would be used to cover its exports to Japan and Hong Kong. The cost of labor was very low in central Asia. On September 11, 2001, the terrorist attacks on the United States caused Ohio to reassess the potential cost savings. Why would the estimated expenses of the plant increase after the terrorist attacks?

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Financial Econometrics: Establishing a manufacturing plant in central asia

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