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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
A US corporation opening a factory in China is a business - related decision. We analyze each option:
- "To take advantage of affordable land prices": China has regions with relatively lower land prices compared to some US areas, which can reduce the cost of setting up a factory.
- "To take advantage of abundant resources": China has a wide range of natural and industrial resources that can support production.
- "To take advantage of lower labor costs": Labor costs in China have been relatively lower than in the US in many manufacturing - related fields, helping to cut production costs.
- "To take advantage of favorable tax laws": China has offered tax incentives for foreign - invested enterprises in some regions and industries, which can increase the corporation's profitability.
- "To take advantage of US employment opportunities" is incorrect because opening a factory in China is not related to creating US employment; it is more about operating in China.
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A. to take advantage of affordable land prices
B. to take advantage of abundant resources
C. to take advantage of lower labor costs
D. to take advantage of favorable tax laws