Which of the following, if true, strengthens the case for Martinet to

QUESTION

Which of the following, if true, strengthens the case for Martinet to not outsource some of its operations to Latin America?

A) Shipping costs between the United States and Latin America are low.
B) Martinet’s workers just won a number of expensive concessions from the company in its latest labor contract.
C) The specialists most familiar with the company’s unique designs and materials can be found only in the United States.
D) Latin American countries give U.S. companies incentives to build facilities there.
E) Latin American countries have become increasingly sophisticated in their level of industrial technology.

ANSWER

Answer: C
Explanation: C) Conducting major business operations far away from the specialists who know the most about them might not be the most effective strategy. Choices A and D describe ways in which outsourcing to Latin America might be more cost-effective than to other places. Choice B suggests that Martinet might need to outsource due to rising labor costs. Choice E suggests that Latin American companies would have the technical capabilities to do what Martinet needs to them to do.