Question

Tofas Car is a German automobile manufacturer that builds high-end luxury cars for sale around the world. Tofas managers recognize they are missing opportunities in emerging markets, such as China, which have an increasing number of middle-class people ready to purchase affordable cars. Competitors that entered the Chinese market experienced significant profits over the last two years. Tofas managers have been assigned the task of determining the best strategy for Tofas to do business in China. Which of the following is likely to be the most beneficial to Tofas if it builds a manufacturing facility in China?

a. low-cost labor pool.
b. government regulations.
c. solid infrastructure.
d. legal precedents.

Answer 1

low cost labor pool

Step-by-step explanation:

To build a manufacturing facility in China, the most beneficial to Tofa would be low cost of labour pool. This is due to the fact that if they are able to get labour supply at lower cost levels, they would have reductions in what it takes to produce these cars. low cost of labour causes low cost of production and the price of the cars would be within reach of the middle class. The middle class would be able to afford the cars.