Discuss the impacts of the cost globalization driver on people processing, possession processing, and information-based processing service categories
What will be an ideal response?
People processing may be affected by cost because of variable labor rates in labor-intensive services. There would be a large difference in the cost of running a service in a third-world country versus a developed nation. Variable labor rates may also affect possession processing, as in automotive services. Skilled labor may be difficult to come by, as in Somalia, or may be abundant, as in Germany. Major cost elements of information-based services can be centralized and minor cost elements localized.
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