litical climate.  What is the best decision alter

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter6: Government Influence On Exchange Rates
Section: Chapter Questions
Problem 3IEE
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A manufacturing company plans to expand their production and logistics facility into one of the countries listed in the following table. The cost of building such facilities in each country differ based on the state of its economic and political climate. 

What is the best decision alternative using MINIMAX REGRET decision criterion? 

What is the best decision alternative using criterion of realism at alpha = 0.8?

Economic/Political Climate
Country
Decline Same Improve
South Korea
21.7
19.1
15.2
China
19.0
18.5
17.6
Taiwan
19.2
17.1
14.9
Philippines
Мexico
22.5
16.8
13.8
25.0
21.2
12.5
Transcribed Image Text:Economic/Political Climate Country Decline Same Improve South Korea 21.7 19.1 15.2 China 19.0 18.5 17.6 Taiwan 19.2 17.1 14.9 Philippines Мexico 22.5 16.8 13.8 25.0 21.2 12.5
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