When Swift Inc., an American footwear manufacturer, opened an outlet in Thailand, it discovered that productions costs were much higher in the home market. 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 driven by economic factors, namely lower costs of labor, transportation, and raw materials.