What Do You Think About the Use of Offshoring by MNEs

question 6

Essay

What do you think about the use of offshoring by MNEs? Is it a threat to jobs in the United States? Has it benefited MNEs and other countries more than the United States?

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Definitions:

Variable Costing

Accounting practice that integrates only variable cost elements of production (direct materials, direct labor, and variable manufacturing overhead) into the valuation of products.

Net Operating Income

The total profit of a company derived from its normal business operations, excluding expenses and revenues from non-operating activities.

Unit Product Cost

The total cost (both variable and fixed) associated with producing one unit of product.

Variable Manufacturing Overhead

Costs of manufacturing that vary directly with the level of production, such as utilities and materials.