When firms estimate the costs of outsourcing to low-wage countries, they often overlook problems such as long distances.

Name: When firms estimate the costs of outsourcing to low-wage countries, they often overlook problems such as long distances.
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Question

Quizplus · Accepted Answer

Long distances can increase transportation costs and lead to longer lead times, which can impact efficiency and inventory management. Therefore, overlooking this factor can result in underestimating the total cost of outsourcing.

When Firms Estimate the Costs of Outsourcing to Low-Wage Countries