A Major Advantage of Offshoring for Some American Companies Is

question 48

Multiple Choice

A major advantage of offshoring for some American companies is that they

• A) lower costs and therefore become more competitive.
• B) raise prices to cover the costs of offshoring.
• C) develop closer alliances with American labor unions.
• D) can avoid participation in international business.

---

Definitions:

Time Value

A concept stating that money available now is worth more than the same amount in the future due to its potential earning capacity.

Concept

A general idea or understanding that represents a class of thoughts, objects, or phenomena within a certain framework or theory.

Debt-to-equity Ratio

A ratio measuring the balance between shareholder equity and debt in the capital structure used for financing assets.

Return on Equity

Return on Equity (ROE) is a financial ratio that measures the profitability of a company relative to the equity held by its shareholders, indicating how effectively management uses shareholders' funds.