Your organization is facing significant competition,putting pressure on your profit margins.Labour costs account for a significant percentage of your cost structure,and you are concerned with your profitability,moving forward.Furthermore,you are finding that it is extremely difficult to find production workers willing to work for minimum wage in Canada.As a result,you decide to move operations to Vietnam so you can take advantage of lower labour costs.Which type of key constraint has caused you to make this decision?

A) tax
B) financial
C) legislated
D) service market

Question

Vatsal Patel · Accepted Answer

Final Answer : B, Explanation :  Labour costs account for a significant percentage of the organization's cost structure, putting pressure on profit margins, which is a financial key constraint. Moving operations to Vietnam will allow the company to take advantage of lower labour costs and potentially improve profitability. The other options (tax, legislated, service market) are not directly applicable to the situation described.

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