The offshoring decision revolves around:
A) the level of domestic opposition to the idea of offshoring.
B) the level of technology at home and abroad.
C) a comparison of the values added, the marginal costs, and the trade costs of a firm's activities at home versus abroad.
D) labor costs abroad versus in the home market.

Question

Quizplus · Accepted Answer

The offshoring decision revolves around comparing the values added, the marginal costs, and the trade costs of a firm's activities at home versus abroad. While factors such as domestic opposition, technology levels, and labor costs abroad versus in the home market may play a role, the primary consideration is the overall cost-effectiveness of conducting activities offshore relative to onshore. Therefore, option C is the most comprehensive and accurate answer.

The Offshoring Decision Revolves Around