Dave is an executive at a large company. He is concerned that other businesses in his industry have been moving some of their operations to foreign countries in order to cut down on labor costs. The CEO has asked Dave to make a recommendation on what the company should do. Dave always acts in the company's best interest. For what reason might Dave recommend not moving operations overseas?

The cost of labor is much lower overseas, so the company could save money by moving its operations.
The company was given tax incentives to keep their operations local that cancel out their expected.

Question

Dave is an executive at a large company. He is concerned that other businesses in his industry have been moving some of their operations to foreign countries in order to cut down on labor costs. The CEO has asked Dave to make a recommendation on what the company should do. Dave always acts in the company's best interest. For what reason might Dave recommend not moving operations overseas?

 The cost of labor is much lower overseas, so the company could save money by moving its operations.
 The company was given tax incentives to keep their operations local that cancel out their expected.