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Apple Outsources the Production of IPads to Foxconn, a Contract

Question 1

Multiple Choice

Apple outsources the production of iPads to Foxconn, a contract manufacturer with plants in China and Vietnam. Wages in China are higher than in Vietnam. The variable costs of manufacturing iPads in China would be ________ than Vietnam.


A) Lower.
B) Higher.
C) Not enough information to answer.

Correct Answer:

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