Question

According to the text, when the location of a factory is dictated by low production costs, fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n):

1) Offshore factory
2) Source factory
3) Server factory
4) Lead factory

Answer 1

A factory that is dictated by low production costs, fairly developed infrastructure, and availability of skilled workers is referred to as a source factory.

Step-by-step explanation:

When a factory's location is dictated by low production costs, fairly developed infrastructure, and availability of skilled workers, it is referred to as a source factory. Source factories are chosen based on the goal of obtaining the most production with the least cost. These factories are often located in peripheral and semi-peripheral nations, where there are opportunities for lower costs and existing infrastructure.