Good,inexpensive international communication enables firms to "body shop," that is,transmit computer-oriented tasks worldwide to a cheap but skilled labor force.This is an example of a ________ driver of international business activity.
A) political technological
B) market
C) technological
D) cost
E) competitive

Question

Quizplus · Accepted Answer

Advances in computer-based communications are allowing virtual integration, which permits firms to become more physically fragmented as they search the world for lower-cost inputs. For example, good, relatively inexpensive international communication enables large insurance, banking, software, and other firms to "body shop," that is, transmit computer-oriented tasks worldwide to a cheap but skilled labor force. The clients of numerous Indian software companies are in the United States. A few years ago, software teams were required to fly back and forth between the two countries. Now, at the end of the day, customers in the United States e-mail their problems to India. The Indians then work on the solutions and have them back in the United States early the next day. For their work, Indian software engineers often receive only 15 to 20 percent as much pay as do their U.S. counterparts.

Good,inexpensive International Communication Enables Firms to "Body Shop," That Is,transmit