Myriad Inc., a well-established and reputed multinational enterprise (MNE), is headquartered in a highly developed economy. It wants to start its operations in New Denistan, considered one of the less-developed nations in the world. How will this strategic move most likely affect Myriad Inc.?

1. assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 2. should the outside supplier’s offer be accepted? 3. suppose that if the carburetors were purchased, troy engines, ltd., could use the freed capacity to launch a new product. the segment margin of the new product would be $200,000 per year. given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. given the new assumption in requirement 3, should the outside supplier’s offer be accepted?