A U.S. company is attempting to cut costs by shifting some of its services to Thailand. This process of shifting production of products or services overseas to cut costs often results in
A) greater potential for market failure for those products and services.
B) greater economic uncertainty in the market for those products and services.
C) lower consumer prices on those products or services.
D) lower production quantities of those products or services.

Question

Quizplus · Accepted Answer

Shifting production to countries with lower labor costs decreases the cost of producing goods or services, leading to lower prices for consumers. This is commonly referred to as outsourcing or offshoring, and it can increase market competitiveness and profitability for companies. However, it can also disrupt domestic job markets and create economic uncertainties. Despite potential risks, many companies still choose to outsource to cut costs and stay competitive.

A US Company Is Attempting to Cut Costs by Shifting Some