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Case Study # 2ELECTRA BICYCLE COMPANY1.What major advantages did Electra gain by using a contract manufacturer inTaiwan to produces its bikes?- By using a contract manufacturer in Taiwan to produces its bikes, Electrabecame able to introduce their products to the global market: they can export bikesto Asian countries- China, while importing bikes domestic demand (into the UnitedStates). They keep manufacturing costs down (labor costs: cheap)2.When Electra produced its bikes in Taiwan, did the company have to followthe laws of Taiwan or the laws of the United States?- When Electra produces its bikes, it must follow the laws of both Taiwan and the United States. When manufacturing the bikes, Electra must comply with the laws