When Comparing the Total Cost of Ownership from an International

question 2

Multiple Choice

When comparing the total cost of ownership from an international supplier to that of a domestic supplier, the international supplier's:

• A) lower labor costs are easily eroded by additional shipping and insurance costs.
• B) price will be higher if the U.S. dollar is strengthening on the exchange rate.
• C) lower labor costs offset the high cost of inefficient equipment and processes.
• D) lower labor rates must be considered in the context of productivity and quality.
• E) prices are carefully controlled by the U.S. government to prevent dumping.

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Definitions:

Natural Resource

Resources like minerals, forests, water, and fertile land that exist naturally and can be exploited for financial profit.

Copper

A chemical element with symbol Cu and atomic number 29, known for its high thermal and electrical conductivity, often used in electrical wiring and plumbing.

Silver

A precious metal with high electrical conductivity, luster, and reflectivity, used in jewelry, currency, and industrial applications.