Question
Suppose you are the CEO of a firm that manufactures surgical equipment. You have a production plant in Petaling Jaya where you employ highly skilled
Suppose you are the CEO of a firm that manufactures surgical equipment. You have a production plant in Petaling Jaya where you employ highly skilled labor. Your firm is considering moving its production facilities from Petaling Jaya to Ho Chi Minh City in Vietnam in an attempt to lower labor costs. When you compare wages in Vietnam and in Malaysia, you notice that the average wage in Vietnam is significantly lower than the average Malaysian wage. What factors other than wages should you consider when you decide whether or not to move production to Vietnam? Explain.
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