10 Nov A company manufactures auto spare parts. The compa
A company manufactures auto spare parts. The company employs 1500 workers in its two units. The management of the company wants to move the low technology, labor intensive part of its operation to Bangladesh to take advantage of the low cost of labor there. If the company moves its operations to Bangladesh, from both units, a total of 500 workers will lose their jobs. The expected cost saving is estimated to be $1 million in the first year and $2 million in subsequent years, for nine years.
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