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The company would incur high production costs. The second alternative of relocating plants to South Africa would create a job loss in the US. The company would save costs by hiring workers for $10/ day and obeying less strict safety and environmental standards. The strong labor union could cause problems in the future. The third alternative of relocating to Mexico would have the same effects as relocating to South Africa, except that the wages for workers are $3/ day. A larger amount of costs could be saved, although Electrocorp would have to pay attention to citizen health groups which could cause bad publicity...
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