A decision to move production factors from one country to another would be:

Question

Quizplus · Accepted Answer

A decision to move production factors from one country to another is affected by currency and political stability, as well as based on tax, labor supply, and market conditions. Currency stability affects the cost of production, while political stability affects the security of the investment. Tax, labor supply, and market conditions all affect the cost and availability of resources needed for production. Thus, a decision to move production factors is affected by multiple factors, and cannot be solely dependent on cultural and social stability or made cooperatively by subsidiary managers.

A Decision to Move Production Factors from One Country to Another