Gould Furniture is one of the leading furniture companies in Indonesia. In the past, the company had a homogeneous workforce of Indonesian employees. The company is desperate to cut operating and manufacturing costs and, hence, is considering outsourcing part of the manufacturing process to low-cost Vietnam. However, local community leaders across the country are strongly opposing this decision. They believe that exporting jobs to other countries is detrimental to their country in every way possible. Which of the following, if true, is the flaw in the local community leaders' opinion?

Question

Quizplus · Accepted Answer

In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage, though labor groups, politicians, and local community leaders see the exporting of jobs as undermining the job market at home. Managers face the difficult task of balancing the interests of their organization with their responsibilities to the communities in which they operate. In this scenario, the furniture market contributing to 20 percent of deforestation in the country is a flaw in the local community leaders' opinion because exporting jobs to other countries would prevent deforestation in their country. The country having one of the lowest rates of employment in Asia strengthens the local community leaders' opinion. Eighty-five percent of Indonesia's revenue coming from agriculture and the government of Indonesia providing substantial subsidies to start-up companies is irrelevant to the argument about exporting jobs being detrimental to the development of the country. Gould Furniture having alliances with local furniture companies in Vietnam weakens the local community leaders' opinion.

Gould Furniture Is One of the Leading Furniture Companies in Indonesia