you are an employee of a Malaysian firm that produces laptops in Peru and then exports them to Malaysia and other countries for sale. The laptops were originally produced in Peru to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at the time were Malta and Iraq. The Malaysian government decides to impose punitive 100 percent tariffs on imports of cars from Peru to punish the country for administrative trade barriers that restrict Malaysian exports to peru. How should your firm respond?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 4BIC
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you are an employee of a Malaysian firm that produces laptops in Peru and then exports them to Malaysia and other countries for sale. The laptops were originally produced in Peru to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at the time were Malta and Iraq. The Malaysian government decides to impose punitive 100 percent tariffs on imports of cars from Peru to punish the country for administrative trade barriers that restrict Malaysian exports to peru. How should your firm respond? 

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