Question

In recent years, companies from more developed nations have often built new factories in less developed nations. This outsourcing has occurred because developing nations frequently have— *

A.) a favorable climate and abundance of natural resources
B.) money and capital resources
C.) a supply of cheaper labor due to lower standard of living
D.) greater political instability

Answer 1

Developing nations frequently have a supply of cheaper labor due to a lower standard of living.

Step-by-step explanation:

The companies from the more developed nations have invested more and more in opening facilities in less developed countries. This has been enabled with the process of globalization and the gradual opening of the global economy. The companies from the more developed countries, like all companies, want to make more profit while still being competative on the market, so they found a simple solution.

The solution was to open up facilities and move their production to developing countries. The reason was that there is an abundance of labor force that was much cheaper but was giving the same results and in some cases even better results. This has gradually created a problem with rising unemployment in the more developed countries but had a big impact on the development of the economies of the developing countries.