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What is a chief motive for closing factories in America to open factories in less-developed countries, "outsourcing" jobs once done here?

a
People in less-developed countries work for less money; cheap labor.
b
American companies just love to lay-off American workers.
c
American workers are greedy and unappreciative of minimum wage
d
People in less-developed countries want the same wages as American workers

User DimyG
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1 Answer

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Answer:

a . People in less-developed countries work for less money; cheap labor.

Step-by-step explanation:

The chief motive for closing factories in America to open them up in less-developed countries is because people in less-developed countries work for less money and hence cheap labor.

  • Factories in less developed countries can have more work done with lesser amount of money since the work force are more willing to negotiate little pay.
  • This makes production cost lesser and the factories can make more profit per product.
  • Although, the choice of the less developed economy often relies on the availability of raw materials also.

When raw materials are available, and the environment to do business is friendly, companies would be drawn to harness the cheap labor in a particular place.

User Eduardo Moniz
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