When Swift Inc. ,an American footwear manufacturer,opened an outlet in Thailand,it discovered that productions costs were much higher in its home country.Consequently,the firm decided to shift its production to Thailand to profit from the lower costs of labor,transportation,and raw material.The benefits gained by the footwear manufacturer can be attributed to which of the following external factors?

Question

Quizplus · Accepted Answer

The decision to shift production to Thailand was based on the lower costs of labor, transportation, and raw material, which are all economic factors. Market factors would refer to factors related to demand and competition in the market, environmental factors would refer to factors related to the natural environment, and competitive factors would refer to factors related to competition from other firms in the market.