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Besides Their Low-Cost Labor,workers in Chinese Export Zones Offer Multinational

question 80

Essay

Besides their low-cost labor,workers in Chinese export zones offer multinational corporations the benefit of speed and flexibility in comparison with American workers.How is that benefit derived?

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Definitions:

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume of production.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales within a certain range, such as rent or salaries.

Absorption Costing

A costing technique that encompasses the total expenses of production, including direct materials, labor, and all overhead costs, both variable and fixed, in a product's cost.

Single Product

A business or manufacturing approach where only one type of product is produced rather than multiple products.

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