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One area in which you are assisting is in the setup of businessdevelopment in Central and South America for Navigation SystemsInc. (NSI). The firm has negotiated the framework of supplying $40million per year (in U.S. dollars) in navigations systems forAuxiliary Aircraft in Brazil for 10 years. If the products aremanufactured in the United States and delivered to Brazil thenthere will be a 5% import tariff on $40 million in product. As analternative the Brazilian government has offered to pay for allcosts associated with building and locating a manufacturing plantin Brazil to build the product. Auxiliary Aircraft would pay anadditional 15% making annual sales $46 million (in U.S. dollars)and no tariff would be levied.