asked 136k views
3 votes
Which best explains why a US corporation would open a factory in China?

asked
User Janneth
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8.1k points

2 Answers

2 votes

Answer:

to take advantage of lower labor costs

Step-by-step explanation:

Because of low labor rate as related to other nations. In China, it is $5 for Chinese Labor weighed to $7-$8 for US labor. Costs of obedience to health and the environment. Safety is ignored in China. So it causes cost reduction. Mass composition lets China more cause falling costs in making. Raw elements of goods are affordable because of 2 reasons.

1) Most of the material is generated in China itself.

2) Second, due to high demand, they are possible at the lowest price.

answered
User Puffpio
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8.2k points
5 votes
 A company can pay it's foreign employee's far lower wages in China, and working conditions aren't near as regulated. In short, because it's cheaper which will increase the companies profit.
answered
User Candra
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8.2k points

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