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

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

User Pedlar
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1 Answer

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Final answer:

The best justification for offshoring is the proximity to new markets reducing costs, considering factors like logistics and market access often outweigh the mere lower labor costs.

Step-by-step explanation:

The best justification for offshoring production to another country to remain competitive is proximity to new markets will lower costs. Factors such as lower labor costs, access to reliable suppliers, quality of transportation, and communications infrastructure, as well as tax considerations, play significant roles in this decision. Moreover, proximity to new markets can result in reduced shipping costs and allow for better market penetration and responsiveness to local customer needs. It's essential to note that while labor costs are a consideration, other factors like logistics and market access often hold more weight in such decisions.

User Jovan Stankovic
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