Which of the Following Is a "Trade Cost" That Firms

question 108

Multiple Choice

Which of the following is a "trade cost" that firms need to consider when making offshoring decisions?

• A) higher prices of utilities (electricity, fuel) in other countries
• B) higher costs of construction of a plant in other countries
• C) higher costs associated with poor communication and transportation
• D) lower wages paid to low-skilled workers

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