The founder of Radiance Co. in Mexico wants to open its second facility to produce housewares in the United States. However, the finance manager suggests an overseas location would help the company remain competitive, because labor costs are lower in many other countries. To arrive at the decision that will best promote Radiance's ability to compete, what other HR factors, if any, should the company consider?

A) access to resources in each possible location
B) differences in transportation costs from factories to customers
C) no other factors, because costs determine competitiveness
D) differences in workforces' education levels and languages
E) differences in workforces' education, skill, and productivity

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Jerome Hutcheson · Accepted Answer

Final Answer : E, Explanation :  In addition to labor costs, it is important for Radiance Co. to consider the education, skill level, and productivity of the potential workforces in each location. This will impact the quality and efficiency of the production process, ultimately affecting the company's ability to compete. Access to resources and transportation costs may also be important, but they are not specifically related to HR factors. The notion that costs determine competitiveness is oversimplified, as other factors such as quality, innovation, and customer service also play a role in the success of a company.

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