Question

g The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by:

Answer 1

The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by:

the high cost of domestic labor.

Step-by-step explanation:

An entity's ability to be globally competitive in the face of foreign manufacturers with low cost of labor is not helped by the high cost of domestic labor. The cost of direct labor forms part of the computations for the cost of a product and its pricing. Cheaper imports are more affordable to consumers than local products, thus causing consumers to prefer imports to domestic products.