Question

Which is the best justification for offshoring production to another country to remain competitive?

Labor relations concerns are diminished.
Wage increase concerns are eliminated.
Quality control levels will remain the same.
Proximity to new markets will lower costs.

Answer 1

The most justifiable reason for offshoring production is to be closer to new markets, thereby reducing costs and benefiting from local demand and labor.

Step-by-step explanation:

The best justification for offshoring production to another country to remain competitive is the proximity to new markets which will lower costs. This strategic move allows companies to be closer to where the demand is, saving on transportation and logistics while exploiting the benefit of local labor costs. Other factors firms take into account include the quality of transportation, communications, and electrical power networks; the level of taxes; and the competence and honesty of the local government—rather than merely seeking countries with weaker environmental regulations.