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 prices

b. to take advantage of abundant resources
c. to take advantage of lower labor costs
d. to take advantage of favorable tax laws

Answer 1

(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

Answer 2

The answer is: B To take advantage of abundant resources.

Step-by-step explanation:

There are numerous benefits for the multinationals that take their production into developing countries, low labor costs and low tax rates are some of them, however, multinationals usually set up in countries in South America or in Africa. When opening a factory in a country with an economy like China's, it is most likely that its interests are not low labor costs or low tax rates, but to take advantage of abundant resources that may not exist in the country of origin.