A country will find offshoring attractive when:
A) the international relative price of components is greater than the home price of components.
B) the international relative price of components is less than the home price of components.
C) the home relative price of components falls.
D) the international relative price of research and development falls.

Question

Quizplus · Accepted Answer

Offshoring becomes attractive when the international relative price of components is less than the home price of components, as this indicates that it is cheaper to acquire the needed components from overseas.

A Country Will Find Offshoring Attractive When