Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record. However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China. Which of the following facility location factors was most likely instrumental in Levi's deciding to continue operating its facility in China?
A) nearness to customers
B) proximity to raw materials
C) availability of production inputs
D) access to transportation

Question

Quizplus · Accepted Answer

The availability of production inputs, such as low-cost labor and materials, is likely the most important factor in Levi's decision to continue operating its facility in China despite concerns over human rights. This factor outweighed any ethical concerns the company may have had, as it allowed them to keep production costs low and maintain their competitive edge in the market.

Levi Strauss Was Strongly Praised When It Announced It Was