Which of the following is an advantage of offshoring?
A) Hidden costs and risks are rarely involved in offshoring.
B) U.S. firms can charge lower prices through offshoring.
C) Offshoring is the best way to improve business agility.
D) Information risks are low when offshoring services.
E) Offshoring is the best way to increase customer responsiveness.

Question

Quizplus · Accepted Answer

A)For goods in which labor represents a significant portion of production costs, dramatically lowering labor costs through offshoring lets a company lower its prices to consumers.
B)For goods in which labor represents a significant portion of production costs, dramatically lowering labor costs through offshoring lets a company lower its prices to consumers.
C)For goods in which labor represents a significant portion of production costs, dramatically lowering labor costs through offshoring lets a company lower its prices to consumers.
D)For goods in which labor represents a significant portion of production costs, dramatically lowering labor costs through offshoring lets a company lower its prices to consumers.
E)For goods in which labor represents a significant portion of production costs, dramatically lowering labor costs through offshoring lets a company lower its prices to consumers.

Which of the Following Is an Advantage of Offshoring