Moving a company's production to China to take advantage of low-cost labor is an example of a sustainable competitive advantage.

Question

Quizplus · Accepted Answer

Moving production to China may provide a temporary cost advantage, but it is not a sustainable competitive advantage as other companies can also move their production to China to compete. Additionally, labor costs in China may increase over time, eroding the cost advantage. Sustainable competitive advantages are those that are difficult for competitors to replicate or replace, such as unique technology, strong brand recognition, or exclusive access to resources.

Moving a Company's Production to China to Take Advantage of Low-Cost