A process is replicated in another country where wages are 50 percent lower. Staffing and processing times

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A process is replicated in another country where wages are 50 percent lower. Staffing and processing times are identical. What would be the effect on the costs of direct labor?

a. Costs of direct labor would be 50 percent lower. 

b. Costs of direct labor would be the same. 

c. Costs of direct labor would be 50 percent higher. 

d. Cannot determine from the given information.

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Operations Management

ISBN: 9781260547610

2nd International Edition

Authors: Gerard Cachon, Christian Terwiesch

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