The same automobile company produces fiats and ferraris. the company builds an engine plant in china with low production costs for fiats but not ferraris. the probable reason is that

Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy.

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question the probable reason is that Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy. This is because Fiat is an car that is categorized as economical while Ferrari's are luxury sports cars, which are extremely expensive allowing for only a select few people to be able to purchase this car.

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107x106 is the answer