All of the Following Are Arguments Used by Proponents of Offshoring

question 45

Short Answer

All of the following are arguments used by proponents of offshoring except:
a. It creates enormous value for firms and economies.
b. Western firms are able to tap into low-cost and high-quality labor.
c. Firms can focus on their core capabilities.
d. For every dollar spent by US firms on India, the U.S. obtains $1.13.
e. It is not true that some US employees may lose their jobs.

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Definitions:

Purchase Price

The cost at which something is bought, which may include additional fees or taxes involved in the transaction.

Material Cost

The expense incurred in acquiring the raw materials needed to produce a good or deliver a service.

Holding Cost

Holding cost is the expense associated with storing unsold goods or items held in inventory over a certain period, including warehousing, insurance, and depreciation costs.

Economies of Scale

The cost advantage achieved by an increase in production volume that leads to a reduction in per-unit costs.