A company is considering relocating production to a lower-wage country. Volatility in which of the following areas most likely would impact profitability without modifying product landed costs?

Question

Quizplus · Accepted Answer

If the company relocates production to a lower-wage country, the product landed costs will remain the same. However, if there is volatility in currency exchange rates, the company may face unexpected costs or losses if the exchange rate shifts unfavorably. The other options may also impact profitability but would require modifying product landed costs.

A Company Is Considering Relocating Production to a Lower-Wage Country