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Why might a company move its production factory from Texas to Mexico?A.The workforce there is better educatedB.To take advantage of lower labor costsC.The police force there is more protectiveD.The taxes in Mexico are higher

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Why might a company move its production factory from Texas to Mexico?A.The workforce there is better educatedB.To take advantage of lower labor costsC.The police force there is more protectiveD.The taxes in Mexico are higher

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Solution

Una empresa podría trasladar su fábrica de producción de Texas a México para aprovechar los costos laborales más bajos. En muchos casos, la mano de obra en países como México puede ser significativamente más barata que en los Estados Unidos, lo que puede resultar en ahorros significativos para la empresa. Esto puede ser especialmente cierto para las empresas que dependen de la mano de obra intensiva, como las manufactureras.

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Similar Questions

Which of the following concepts explains the decision to relocate market-oriented factories in the United States from the Midwest and Northeast to locations in the southern United States or Mexico?ResponsesComparative advantage, because products can be made more efficiently in the southern United States and Mexico. Operating costs and wages are lower, and the manufactured products are easily transported to major United States markets.Comparative advantage, because products can be made more efficiently in the southern United States and Mexico. Operating costs and wages are lower, and the manufactured products are easily transported to major United States markets.Growth poles, because governments in southern United States cities and Mexico strive to stimulate economic development by providing a guaranteed market for all products manufactured at these locations.Growth poles, because governments in southern United States cities and Mexico strive to stimulate economic development by providing a guaranteed market for all products manufactured at these locations.Just-in-time delivery, because the United States population is shifting to the south and west, and the Mexican population is growing. It is critical to produce goods closer to the consumer base to reduce shipping times.Just-in-time delivery, because the United States population is shifting to the south and west, and the Mexican population is growing. It is critical to produce goods closer to the consumer base to reduce shipping times.Complementarity, because the regional economy of the midwestern and northeastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.Complementarity, because the regional economy of the midwestern and northeastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.Post-Fordist production, because traditional midwestern and northeastern manufacturing centers in the United States are unable to keep up with the technological changes of modern industry.

Because the borderlands of Texas, New Mexico, and California were all more than 1,000 miles away from Mexico City, which of the following was true?Multiple choice question.The Spanish authorities dispatched armed forces to keep watch over them.The royal authorities allowed them to operate as autonomous regions.They were, for the most part, unsupervised by Mexican authority.Spain established several well-financed settlements there.

9. Faced with the evidence of poor working conditions and low wages in the bordermaquiladoras, economistsA) shrug their shoulders and ignore the issue.B) agree that trade theory is thus proven hollow and internally inconsistent.C) argue that U.S. consumers should not consume lettuce.D) argue that the poor conditions and low wages are actually improvements for the Mexicanworkers, and may be cited as gains-from-trade.E) argue that Mexico's generally high overall productivity offsets these conditions.

Fill in the Blank QuestionFill in the blank question.Many American firms manufacturing or other tasks to countries where labor and supplies are less expensive.

(c) Examine the article below about a multinational company moving the location of one of its factories and answer each of the following questions.: A multinational company, whose head office is in the USA, has decided to relocate one of their factories from Ireland to Vietnam in Asia. This will result in the loss of 400 jobs in the large Irish town where the factory is currently located. (i) Name one impact of the relocation mentioned in the article above. (ii) State one reason why a multinational company would decide to move a factory from a developed country, like Ireland, to a developing country, like Vietnam. (iii) How does this decision by the multinational company to move one of its factories to another country show that we live in a globalised and interconnected world?

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