All of the Following Are Potential Problems of Offshoring Operations

question 74

Multiple Choice

All of the following are potential problems of offshoring operations EXCEPT

• A) the difficulty of reintegrating the production employees to the U.S. should the offshore location close.
• B) potential for lower quality production or service-provision by the offshore facility.
• C) erosion of institutional knowledge in the home country headquarters.
• D) loss of intellectual talent in the home country headquarters.

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Definitions:

Units

A standard measure or quantity used to specify or quantify the amount of a product, service, or resource.

Prices

The amount of money required to purchase goods or services.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, crucial for economic and pricing decisions.

Marginal Revenue

The additional income received from selling one more unit of a product or service.