Business
FinanceInternational Financial ManagementCapitalizing on Low-Cost Labor Some MNCs establish a manufacturing facility where there is a relatively low cost of labor, but they sometimes close the facility later when the cost advantage dissipates. Why do you think the relative cost advantage of these countries is reduced over time? (Ignore possible exchange rate effects.)Capitalizing on Low-Cost Labor Some MNCs establish a manufacturing facility where there is a relatively low cost of labor, but they sometimes close the facility later when the cost advantage dissipates. Why do you think the relative cost advantage of these countries is reduced over time? (Ignore possible exchange rate effects.)
FindFindlaunch
International Financial Management
14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFindlaunch
International Financial Management
14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
Solutions
Chapter 13, Problem 6QA
Textbook Problem
Capitalizing on Low-Cost Labor Some MNCs establish a manufacturing facility where there is a relatively low cost of labor, but they sometimes close the facility later when the cost advantage dissipates. Why do you think the relative cost advantage of these countries is reduced over time? (Ignore possible exchange rate effects.)
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