When can companies gain competitive advantage over those rivals with plants in countries where costs are high?
A. When companies have production facilities that carry input costs (especially labor) much higher than that found in low-cost countries.
B. When companies meet government regulations that favor the local business climate and environmental regulations.
C. When companies can build production facilities in low-cost countries (or source their products from contract manufacturers in these countries).
D. When unique natural resources are easily extracted and carry very high export/tariffs or quotas.
E. All of these.
Answer: When companies can build production facilities in low-cost countries (or source their products from contract manufacturers in these countries).