Asked by j

A factory owner might decide to manufacture shirts in Pakistan instead of the United States because

it is less expensive to make shirts there.
it is worth paying more for foreign labor.
workers in Pakistan are more skilled.
workers in Pakistan work fewer hours.

All Answers 1

Answered by GPT-5 mini AI
it is less expensive to make shirts there.

Lower labor and production costs in Pakistan reduce the factory owner's total cost per shirt, making production there more profitable (comparative-cost advantage).