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Question: Closing down a factor: Prepare arguments for and against the following behavior (at least one par…

by | Nov 30, 2023 | Posted Questions



Closing down a factor:

Prepare arguments for and against the following behavior (at
least one paragraph each):

Your company is managing to maintain a good profit margin on the
computer parts you manufacture in a very tough economy. Recently,
an opportunity has come along to move your production capacity
overseas. The move will reduce manufacturing costs significantly as
a result of tax incentives and lower labor costs, resulting in an
anticipated 15 percent increase in profits for the company.
However, the costs associated with shutting down your U. S.- based
operations would mean that you wouldn’t see those increased profits
for a minimum of three years. Your U. S. factory is the largest
employer in the surrounding town, and shutting it down will result
in the loss of over 800 jobs. The loss of those jobs is expected to
devastate the economy of the local community.

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