Question

What are the most likely reasons a us corporation would open a factory in china? Check all that apply.

a. to take advantage of affordable land pricesb. to take advantage of abundant resourcesc. to take advantage of lower labor costsd. to take advantage of favorable tax laws

Answer 1

To take advantage of favourable tax law

Answer 2

The correct answer is: All of them apply.

Step-by-step explanation:

Typically, when a company plans to start operations abroad it is to reduce costs which eventually will imply getting higher revenues. Cheaper labor hand, resources, infrastructure or discrete government intervention in businesses impulse major firms to go off-shore.