Which of the following is a factor to consider in keeping many types of production in one's own country which has high labour costs rather than shifting to low labour cost countries?
A)Relative labour costs are stable over time.
B)The quality and productivity of national labour forces generally do not vary.
C)Any consideration of where to locate production can be based on labour considerations alone.
D)The combination of lower labour costs and higher productivity translates into lower unit labour costs.

Question

Quizplus · Accepted Answer

The combination of lower labour costs and higher productivity translates into lower unit labour costs. This factor makes it viable to keep production in countries with high labour costs as the overall cost of production may end up being lower due to higher productivity and efficiency. The other options are incorrect as relative labour costs can change over time, the quality and productivity of national labour forces can vary, and other factors beyond labour must also be considered in deciding where to locate production.

Which of the Following Is a Factor to Consider in Keeping