Respuesta :
Answer:
It would take 1097 days for the costs in Canada to be equal (up to) the cost in China
Step-by-step explanation:
The information given in the question includes;
1) China initial fee = $1,000,000
Number of people = 10
Payment per person per day = $1
Payment for the 10 people per day = $10
Canada initial fee = $50,370
Number of people = 10
Payment per person per day = $90
Payment for the 10 people per day = $900
Step 1: Define the variables to represent unknown quantities
Let the number of days at which the cost would be equal be X
Step 2: The equations relating the variables are;
$1,000,000 + X-days × $10/day = $50,370 + X-days × $900/day
Step 3: To solve the equation we have;
$1,000,000 - $50,370 = X-days × $900/day - X-days × $10/day
$949,360 = X-days × $890/day
X-days = $949,360 ÷ $890/day = 1067 days
Step 4: Conclusion: It would take 1097 days for the costs in Canada to be equal (up to) the cost in China
5) The difference in wages can be explained by the following;
1) Low cost of living in China compared to Canada
2) Higher unemployment figures in China
3) Government policies
6) Companies that outsource their manufacturing includes;
1) Apple 2) Cisco 3) Nike
7) Advantages of outsourcing
a) Acquire skilled labor
b) Reduce the distraction of manufacturing and focus on fundamental pursuits
c) Reduce risks
d) Improve efficiency
e) 24 hours up time business
f) Improved workforce flexibility
g) Service improvement
h) Cost savings
8) Disadvantages of outsourcing
a) Hidden costs of production
b) Potential loss of focus
c) Increased security risks
d) Reduced central control
e) Partake in financial cost of other companies
