Question

Over 80% of the clothes that Americans buy have been manufactured in other countries. Why do American firms sell clothes made in other countries? Foreign-made clothes are of higher quality than American-made clothes. Foreign-made clothes are more stylish than American-made clothes. Foreign-made clothes cost less than similar American-made clothes. Our government subsidizes imported clothing.

Answer 1

American firms sell clothes made in other countries because foreign-made clothes cost less than similar American-made clothes. This is due to the cheaper cost of labor in foreign countries.