4 Outsourcing. [6 points] In the past few decades, ?rms from industrial economies have installed production plants in developing countries{e.g., China, India and Mexico). This strategy allowed them to...

4 Outsourcing. [6 points] In the past few decades, ?rms from industrial economies have installed production plants in developing countries{e.g., China, India and Mexico). This strategy allowed them to move production from expensive locations to cheaper ones (a phenomenon called outsourcing). If the Chinese Remninbi appreciates against the US dollar, What wouldhappen to outsourcing in China by US companies? Explain.