Question

Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents. Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the United States. Which of the following, if true, supports the argument to build a new Emerson facility in China?

A. China is revoking its membership from the World Trade Organization.
B. China has increased Internet controls and blocked most international search sites.
C. The Chinese Commonwealth network is investing large amounts of capital in China.
D. The Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit.

Answer 1

Among the given options, the argument for building a new Emerson facility in China is supported by the fact that the Chinese Commonwealth network is investing large amounts of capital in the country, indicating a favorable economic environment for such an investment. Considering the global trend for assembly lines and MNCs to choose strategic locations, the statement that The Chinese Commonwealth network is investing large amounts of capital in China supports building the facility in China (C).

Step-by-step explanation:

The question at hand is which of the provided scenarios supports the argument to build a new Emerson facility in China for the manufacturing of automotive parts for cars made in Detroit. Considering the global trend for assembly lines and MNCs to choose strategic locations, the statement that The Chinese Commonwealth network is investing large amounts of capital in China supports building the facility in China (C). This indicates a supportive economic environment and implies that there may be favorable conditions for foreign investments, which could include subsidies or other financial incentives for Emerson to establish a new facility. Moreover, strong capital investment can also signal a commitment to the development of infrastructure that can benefit manufacturing operations.

When considering whether to build a new manufacturing facility in China or in the United States, Emerson executives should consider several factors. One factor that supports the argument to build in China is the large number of workers employed in Emerson's Asian operations. With over 50,000 people already employed at manufacturing facilities in China, Emerson can take advantage of the existing workforce and infrastructure in the country. This can potentially lead to lower costs and faster production. Additionally, if China is investing large amounts of capital in the country's manufacturing sector, it indicates the government's support and commitment to the industry, making China an attractive option for Emerson.