g reduced profitability because of high domestic costs of production. Its market share is declining. Price increases are not an option since competition is too intense. One or more of our competitors have already moved some production capacity to Mexico. As a result, they have lowered their production costs and either reduced prices or increased profits. We must react quickly. We need to find a way to lower overall production costs below those of the competition by investing in new manufacturing capabilities in a Less Developed Country (LDC). Selecting the right LDC country is the subject of this report.
One LDC that must be on the top of our list of candidates is China. The economic progress witnessed in mainland China in the last twenty five years has been unparalleled. The integration of Chin
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