Suppose that Mickey's Clothing moved its operations out of Korea and into China because of the lower wages in China. Now, the wages in Korea are such that it would be cheaper to manufacture
The clothes in Korea than it is in China. This is an example of:

Question

Quizplus · Accepted Answer

This is an example of economic exposure, as it demonstrates how changes in wages and production costs in different countries can impact a company's decision to relocate their operations. Economic exposure refers to the long-term impact of changes in exchange rates, interest rates, and other economic factors on a company's profitability and competitiveness.

Suppose That Mickey's Clothing Moved Its Operations Out of Korea