Posted: July 28th, 2016

Gould Furniture is one of the leading furniture companies in Indonesia.

Gould Furniture is one of the leading furniture companies in Indonesia. In the past, the company had a homogeneous workforce of Indonesian employees. The company is desperate to cut operating and manufacturing costs and hence is considering outsourcing part of the manufacturing process to low-cost Taiwan. However, local community leaders across the country are opposing this decision strongly. They believe that exporting jobs to other countries is detrimental to their country in every way possible. Which of the following, if true, is the flaw in the local community leader’s opinion?