B. Language issues, cultural issues, and time zone issues all have negative effects.

C. Or it could mean labour is more productive because it has more free time and is less stressed. There's no pointless commute and some chores can be done in the background. Getting slightly distracted by laundry is far less of a loss to productivity than being constantly distracted by conversations, office noise, pointless meetings, and so on.

Your arguments are all MBA-level arguments, which means they look superficially convincing but they lack systemic insight.

There's plenty of evidence that happier workers are more productive. Treating workers like people instead of machinery has comprehensive business benefits. The only real cost is a reduction in the self-perceived relative status of the C-suite.

Essentially this is an argument about hierarchy and loss of face, and not so much about measurable business costs/benefits.