Question

What are the most likely reasons a US corporation would open a factory in China? Choose four answers.

to take advantage of affordable land prices
to take advantage of abundant resources
to take advantage of lower labor costs
to take advantage of favorable tax laws
to take advantage of US employment opportunities

Answer 1

- to take advantage of affordable land prices
- to take advantage of abundant resources
- to take advantage of lower labor costs
- to take advantage of favorable tax laws

(Opening a factory in China is typically driven by lower labor costs, access to local resources and supplier networks, lower/cheaper land in some regions, and tax or incentive policies from local/regional governments. It would not be to take advantage of US employment opportunities.)