Which of the following, if true, weakens the CEO’s case for outsourcin

QUESTION

Which of the following, if true, weakens the CEO’s case for outsourcing to Latin America?

A) Latin America has rapidly growing markets in consumer products.
B) Labor conditions in Latin America are volatile.
C) Latin American countries have mostly friendly relations with one another.
D) Companies in Latin America are quite knowledgeable about American business culture.
E) Latin American workers are willing to work longer hours than many American workers.

ANSWER

Answer: B
Explanation: B) This suggests that it would be difficult to predict the success of Martinet’s relationship with a Latin American company. On the other hand, if the labor market has positive aspects from Martinet’s point of view (Choice E), that would support the CEO’s case for outsourcing to Latin America. Choice A also strengthens the CEO’s case because it suggests that Latin American countries would be able to support Martinet’s part and assembly operations. If the Latin American business environment is stable (Choice C) and Latin American companies are savvy about doing business with their American counterparts (Choice D), then Martinet will likely be able to work relatively smoothly with Latin American companies.