Manufacturing in a country primarily because of low cost labor is not always the best strategy because:
A) Labor can be a small percentage of cost
B) Labor costs can change over time
C) Workers could be unskilled
D) Other costs outweigh labor cost advantage
E) All of the above

Question

Quizplus · Accepted Answer

All of the above reasons are valid. Labor cost may only be a small percentage of the overall cost of manufacturing, and labor costs can change over time due to factors such as minimum wage laws or market competition. Additionally, if the workers are unskilled, there could be issues with quality control and productivity. Finally, other costs, such as transportation, taxes, and tariffs, may outweigh the advantage of low-cost labor. It is important for companies to consider all of these factors when deciding on a manufacturing location.

Manufacturing in a Country Primarily Because of Low Cost Labor