_Global Expansion You’re the manager of global...

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Name: Steven Joseph Spayer Week 7 – Homework: 17.1, 17.2, 19.3, 20.3 BUS5421_Managerial Economics_Florida Tech Individual Problems / Solutions 17.1_Global Expansion You’re the manager of global opportunities for a U.S. Manufacturer, who is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, Philippines, and Singapore as described next: Success Level Malaysia Philippines Singapore Probability Units Probability Units Probability Units Big 0.3 1,200,000 0.3 1,000,000 0.7 700,000 Mediocre 0.3 600,000 0.5 320,000 0.2 400,000 Failure 0.4 0 0.2 0 0.1 0 The product sells for $10 and has unit costs of $8. If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of these markets? If so, which one? If you enter, what is your expected profit?

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