The Offshoring Decision Revolves Around

question 67

Multiple Choice

The offshoring decision revolves around:

• A) the level of domestic opposition to the idea of offshoring.
• B) the level of technology at home and abroad.
• C) a comparison of the values added, the marginal costs, and the trade costs of a firm's activities at home versus abroad.
• D) labor costs abroad versus in the home market.

---

Definitions:

Payments

Transactions by individuals or entities to transfer money in exchange for goods or services.

Overhead Expenses

The ongoing expenses associated with running a business that are not directly tied to the production of goods or services.

Mark-up

An extra charge applied to the base cost of products to accommodate for overheads and earnings, culminating in the final asking price.

Selling Price

The amount of money for which an item or service is sold to the buyer.