Step 1 Read the following scenario. You are charged with evaluating whether to shut down a manufacturing facility in Louisiana and move the operation to India where labor laws allow your firm to pay...

1 answer below »

Step 1


Read the following scenario.


You are charged with evaluating whether to shut down a manufacturing facility in Louisiana and move the operation to India where labor laws allow your firm to pay lower wages and employees work longer hours. Your analysis shows that moving the factory overseas would be more profitable than keeping the factory in the United States.


Step 2

Post your response to the discussion board.

Respond to the following questions:



  • From a finance perspective, should the firm stay in the U.S. or relocate to India? Provide an argument in favor of your decision.

  • What are the financial ethical issues you foresee if you elect to move the factory to India?

  • What are the financial ethical issues you foresee if you elect to leave the factory operating in Louisiana?

After reading the scenario in Step 1, I need 1 paragraph answering the three questions in Step 2. Please write in basic English as I am an international student whose English is a third language person. Do not do any outside research to answer the three question. This is an ethical decision makingrelated to Finance so everything has to be from your mindand as an introductory course of finance.
Answered Same DayMar 21, 2021

Answer To: Step 1 Read the following scenario. You are charged with evaluating whether to shut down a...

Ashish answered on Mar 22 2021
143 Votes
Solution-1
In India costing of wages is lower in such case overall cost of the product reduced and
the company profitability increase. Moreover, India is one of the developing country and employees are ready to work for longer hours. Therefore, employees able to produced high number of quantity for sale which also increase business overall profit. Also, the value of Local Currency of India is lower in comparison to US dollars in such case the company has edge in make additional profits. The company also able to...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here