BMW Recently Decided to Build a Manufacturing Plant in Shenyang,China

question 139

Multiple Choice

BMW recently decided to build a manufacturing plant in Shenyang,China.At this plant,BMW is able to take advantage of paying lower wages to its Chinese workers than it pays its German workers,but it also sacrifices the high levels of technical training possessed by its German workers.In deciding to open the Shenyang plant,BMW

• A) faced no trade-offs because employing lower-wage workers increased efficiency.
• B) faced a trade-off between higher cost and lower precision.
• C) adopted a negative technological change because it replaced high-skilled workers with low-skilled workers.
• D) eroded some of its competitiveness in the luxury car market because of its decreased cost of production.

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