Question

Champion Works Inc. is an animation company, headquartered in the United States. The CEO of the company has decided to outsource some of the production to companies in developing countries, as the firm seems to be losing out on its competitive advantage. This decision to shift functions or processes to less developed countries is most likely due to their:Group of answer choices

Answer 1

B) lower labor costs.

Step-by-step explanation:

Most companies outsource their production facilities basically because production in developing countries is much cheaper than producing in the US. Why do you think so many things are built in China or why most customer service calls are answered up by Hindus?

In many in the countries, the federal minimum wage represents the salary of a CEO, and a well trained and efficient CEO. The minimum wage in India is currently $3 per day, for 8 hours of labor, while the federal minimum wage is $7.25 in the US and some states like California, Washington and Massachusetts set a $12 per hour minimum wage. In a regular week (40 hours), an American in these states earns the same as an Hindu in almost half a year. And the minimum wage is not even close to being the normal wage in the US ($56,516) while the median wage in India is about $3,600, in China salaries are a little higher, nut only a little.

Answer 2

Lower Labor costs.

Step-by-step explanation: