When does it become more desirable to shift more
Activities in the value chain abroad?
A)when the wage of unskilled workers increases abroad
B)when trade costs decline
C)when the wage of skilled workers decreases at home
D)when the price of the final output rises

Question

Quizplus · Accepted Answer

When trade costs decline, it becomes cheaper to shift activities in the value chain abroad. This can lead to cost savings for the company and increase their competitiveness. The other options may not necessarily make it more desirable to shift activities abroad.

When Does It Become More Desirable to Shift More