Question

Read these two scenarios, and then answer the question that follows.

Answer 1

The shipment and logistics cost for a company to be established in overseas is a risk and costly too. The political scenario in which the company is going to get established must also be taken into account as political policies may interfere with the industrial policies of the company. The wages of labor can be high for the company that is planning to move overseas.

Currency rate fluctuations and the inflation rate may influence the demand of the product. Sam may feel frustrated as he would not be getting paid in a regular basis because the company is forced to spend more expenditure in setting up the industry.

Angela may have to face the heat of high price of the Furniture because the Furniture Company would aim to balance its cost and expenses by fixing high price to the product.

Answer 2

Answer:

Sam will most likely be against companies moving operations abroad because it means a loss of jobs within the country. Angela, on the other hand, might support such a move if it means cheaper goods for consumers.