Swift Inc.,a French footwear manufacturer,opened a new outlet in Thailand.Swift Inc.soon found substantial differences in the costs incurred in the host country.The firm shifted production to Thailand which resulted in lower labor costs,lower transport costs,and lower raw material costs.The benefits gained by the footwear manufacturer are attributed to which of the following external factors?

Question

Quizplus · Accepted Answer

Economic factors include worldwide economies of scale in manufacturing and distribution, steep learning curves, worldwide sourcing efficiencies, rising product development costs, and significant differences in host-country costs. The benefits gained by Swift Inc. relate to the economic factors of significant differences in costs in the host country, Thailand.

Swift Inc,A French Footwear Manufacturer,opened a New Outlet in Thailand