When Comparing the Total Cost of Ownership from an International

Multiple Choice

When comparing the total cost of ownership from an international supplier to that of a domestic supplier, the international supplier's:

A) lower labor costs are easily eroded by additional shipping and insurance costs.
B) price will be higher if the U.S. dollar is strengthening on the exchange rate.
C) lower labor costs offset the high cost of inefficient equipment and processes.
D) lower labor rates must be considered in the context of productivity and quality.
E) prices are carefully controlled by the U.S. government to prevent dumping.