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

Question

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

The most likely reasons a US corporation would open a factory in China include the following four:

1. To take advantage of lower labor costs - Labor costs in China are generally lower compared to the United States, which can significantly reduce production expenses.

2. To take advantage of favorable tax laws - China often provides incentives and favorable tax structures for foreign direct investment, making it an attractive location for companies looking to maximize profits.

3. To take advantage of affordable land prices - In certain areas, land prices can be more affordable in China compared to the U.S., allowing companies to acquire property for manufacturing at a lower cost.

4. To take advantage of abundant resources - China has a vast array of natural resources and is often integrated into global supply chains, which can facilitate production and logistics for companies.

The option "to take advantage of US employment opportunities" does not align with the rationale for opening a factory in China, as that would typically involve reducing or relocating jobs in the U.S. rather than taking advantage of local opportunities.