In Considering the Decision to Offshore,which of the Following Generally

question 92

Multiple Choice

In considering the decision to offshore,which of the following generally is not one of the hidden costs?

• A) total wage costs and indirect costs
• B) wage deflation
• C) reduction in intellectual property rights
• D) increased inventory and coordination costs

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Definitions:

Production Costs

The total expenses incurred in the process of producing goods or services, including raw materials, labor, and overhead.

Distribution Costs

Expenses associated with delivering a company's products from the production point to the consumer, including transportation, warehousing, and logistics.

Third Country

Refers to a country that is neither the home country nor the host country of the business involved, often in the context of international trade or operations.

Host Country

The country in which a multinational corporation operates a facility outside of its home nation.