Why do managers at companies move their operations to other countries outside the United States? What is the impact on the company?
What will be an ideal response?
Managers consider moving their operations to other countries from the United States to lower-cost countries because they can substitute high fixed costs with lower variable costs. They save a significant amount of money when they purchase products from lower-cost suppliers instead of manufacturing the products themselves. As a result, there is a reduction in costs and operating leverage. Many organizations move their call centers to other countries because the costs are less than maintaining the operations in the United States.
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Which of the following is a feature of human capital?
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