1. You run a firm producing 500,000 widgets a year for the North American market. Labour costs in Muncie, IN., are $ 20/hour; The average worker produces 10 widgets per hour. You are considering moving to an emerging nation where labour costs are $ 3.90/hour; the average worker can produces 2 widgets per hour. Decide.
2. Last year the U. S. dollar appreciated by 8% against the peso. You borrowed $ 1,000,000 from the National Muncie Bank at 4%. These funds were invested in a Latin country in a fund that returned 12%. What was you rate of return?