Which of the Following Is NOT a Consideration That Firms

question 62

Multiple Choice

Which of the following is NOT a consideration that firms should include in deciding whether to offshore part of its value chain of activities?

• A) higher foreign costs of construction, electricity, and fuel.
• B) higher foreign taxes.
• C) higher transportation costs to ship the offshored product to the home country.
• D) relatively higher costs of foreign skilled labor.

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Definitions:

Human Resource Problems

Issues related to the management of employees within an organization, including recruitment, employment, and retention.

Developing Nations

Countries with lower levels of industrialization, lower standards of living, and lower Human Development Index (HDI) ratings compared to more industrialized nations.

Capital Flight

The rapid movement of large sums of money or capital out of a country, typically to avoid economic instability or unfavorable conditions.

Corruption

The abuse of entrusted power for personal gain, often undermining democracy, ethical values, and justice.