Offshoring assumes that a firm will use relatively lower
Cost foreign labor.However, there are other
Considerations involved, such as:
I.higher taxes and higher costs of construction,
Electricity, and fuel.
II.higher capital costs.
III.higher transportation costs.
A)I
B)II
C)III
D)I, II, and III

Question

Offshoring assumes that a firm will use relatively lower­
Cost foreign labor.However, there are other
Considerations involved, such as:
I.higher taxes and higher costs of construction,
Electricity, and fuel.
II.higher capital costs.
III.higher transportation costs.
A)I
B)II
C)III
D)I, II, and III

Quizplus · Accepted Answer

Offshoring involves more than just the cost of labor. Other considerations such as higher taxes, construction costs, electricity and fuel costs, capital costs, and transportation costs must also be factored in when making the decision to offshore. Therefore, options I, II, and III are all valid considerations when considering offshoring.

Offshoring Assumes That a Firm Will Use Relatively Lower­

Offshoring Assumes That a Firm Will Use Relatively Lower