Question

Which of the following, if true, would support reshoring as a strategy for a U.S. firm?

A) Rising labor costs overseas
B) Increasing wage costs in the United States
C) Increasing public support for offshoring in the United States
D) Improving health and safety requirements overseas
E) Decreasing cost of living overseas

Answer 1

Rising labor costs overseas and improving health and safety requirements overseas support reshoring as a strategy for a U.S. firm.

Step-by-step explanation:

The factor that would support reshoring as a strategy for a U.S. firm is rising labor costs overseas.

When labor costs increase in countries where manufacturing is typically outsourced, it becomes more cost-effective for U.S. firms to bring their manufacturing operations back to the United States. This is because it eliminates the need to pay for expensive labor abroad. Rising labor costs overseas provide an incentive for U.S. firms to reshore their operations and create jobs domestically.

Another contributing factor that supports reshoring is improving health and safety requirements overseas. If countries enforce stricter health and safety regulations in their manufacturing processes, U.S. firms may prefer to reshore their operations to ensure compliance with high standards.