A Firm Notices That Wages in Another Country Are Lower

question 21

Essay

A firm notices that wages in another country are lower than it currently pays its employees. What are three reasons why the firm may choose not to relocate?

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Definitions:

Due Date

The specified date by which an obligation, such as a bill or assignment, must be completed or paid.

Remittance

The process of sending money in payment or as a gift, often referring to funds that are sent by migrants back to their country of origin.

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.

Discount Date

The specified date when a payment is to be made earlier than the due date at a reduced amount, as a motivation for early payment.