Which Statement Best Reflects the Current View on the Efficacy

question 1

Multiple Choice

Which statement best reflects the current view on the efficacy of offshoring as a cost reduction measure?

• A)While organizations can save with this practice,hidden costs,such as productivity loss during the transition,can chew up much of the financial gains.
• B)The practice of offshoring has been one of the most positive HR trends of the last ten years.
• C)The continuous shifting of global economies makes offshoring a necessary function for organizations to survive.
• D)Offshoring only works if top managers begin early in the process to plan their key strategies,such as alternative talent pools and workforce training.

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Definitions:

Average Total Cost

The overall expense of manufacturing divided by the quantity of products made, indicating the expense for each unit of production.

Profit-maximizing

The process of adjusting production and pricing strategies to achieve the highest possible profit from the sale of goods and services.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed.

Economic Profit

The difference between total revenue and both explicit and implicit costs; the profit that exceeds the opportunity cost of resources.