Question
TeleCal Communications is a cellular telephone manufacturing facility located in the small town of Bugtussle, California.They are the largest employer in Bugtussle employing approximately 800
TeleCal Communications is a cellular telephone manufacturing facility located in the small town of Bugtussle, California.They are the largest employer in Bugtussle employing approximately 800 workers in a town of about 4,000 residents. The chief executive officer of TeleCal, Mersely Mouch, decides that in order for the company to remain competitive, they must lower manufacturing costs.Mersely investigates moving the facility offshore to a small developing country which currently has very high unemployment.Due to an extremely inefficient bureaucracy in that country, laws regarding minimum wage and worker safety that might otherwise add to the production cost of a product are randomly enforced.Mersely doesn't think that he'll have to obey the regulations.There are no other major employers in Bugtussle.If TeleCal moves, then the employees will probably not be able to find comparable work locally; however, profits for the company are expected to increase by 40%.Mersley decides, based solely on the consideration of the lower production costs and increased profits, to move the company abroad and leave only the corporate headquarters in Bugtussle.The corporate offices will require a staff of about 50 personnel.
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