Drop downs are the same and their options are: \"India\" or \"The US.\" Suppose

Question

Drop downs are the same and their options are: "India" or "The US."

Suppose Hewlett-Packard is considering outsourcing its telephone-based technical support functions for its printers to India. The hourly cost of a tech support person in the United States is $50 per hour. In India, workers are paid in rupees but, at the current exchange rate, are paid the equivalent of $20 per hour. However, calls serviced in India require paying for long distance telephone service. Initially the telephone costs were about $35 per hour. However, a switch to voice over internet protocol (VIOP) technology reduced the telephone cost to $25 per hour. Explain how the technological change affects the decision of where to base service Before the switch to VIOP, it was optimal for Hewlett-Packard to base its technical support functions for printers in after the switch, it is optimal for Hewlett-Packard to base its technical support functions for printers in How much would the Indian currency (the rupee) have to rise in value (in percentage terms) for Hewlett-Packard to keep the service activity in the United States assuming $25 per hour VOIP? The Indian currency would have to rise in value by percent (Enter your response as a whole number.)

Explanation / Answer

1) The US

2) India as it became cheaper.

The cost would have to increase $5 or more ie by 20%

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.