When relocating production offshore, volatility in which of the following areas most likely would impact profitability without modifying product landed costs?

Question

Quizplus · Accepted Answer

When relocating production offshore, currency exchange rates can have a significant impact on profitability without modifying product landed costs. Fluctuations in exchange rates can affect the financial performance of the company, particularly if there is a significant difference between the currency of the production location and the currency of the market where the product is sold. Labor costs, commodity prices, and product quality are all factors that would affect the production cost and thus impact landed costs.

When Relocating Production Offshore, Volatility in Which of the Following