Offshoring to Low-Cost Countries Is Most Attractive for Products with

question 5

Multiple Choice

Offshoring to low-cost countries is most attractive for products with

• A)large production volume.
• B)high variety.
• C)low labor content.
• D)a high ratio of transportation cost to product value.

---

Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Gasoline Consumption

The total volume of gasoline used by vehicles within a country or region, often measured in gallons or liters per capita.

Perfectly Inelastic

A situation in economics where the quantity demanded or supplied does not change regardless of changes in price.

Elasticity

A measure in economics that denotes the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.