Sven is a senior vice president at a textile manufacturer that wants to move from being 20 percent globalized to 70 percent globalized in the next 10 years. What are some possible drawbacks that Sven's company must anticipate?

Question

Quizplus · Accepted Answer

Once consequence for multinational enterprises (MNEs) of continued economic development across the globe is that rising wages and other costs are likely to negate any benefits of access to low-cost input factors. China's labor costs, for example, are steadily rising in tandem with an improved standard of living, especially in the coastal regions, where wages have risen 50 percent since 2005.

Sven Is a Senior Vice President at a Textile Manufacturer