Which of the Following Descriptions Refers to the Cost Advantage

Multiple Choice

Which of the following descriptions refers to the cost advantage of lower transaction costs?

A) Producing overseas can save on the costs of arranging a contract with an overseas import agent, or with a firm in the host country to make the product under licence.
B) A country abroad might have a highly skilled or highly industrious workforce.
C) The tax rate may be lower abroad.
D) Wage rates may be lower abroad.
E) Where skills and productivity improve with experience, initial small cost advantages of locating overseas may become much more substantial over time.