What is a major reason multinational firms headquartered in Canada might locate production facilities in foreign countries?
A) to take advantage of the fact that many other nations have much higher per capita GDPs than Canada
B) to gain access to a pool of highly educated workers who are paid much less than Canadian workers
C) to avoid the need to deal with ethical issues
D) to gain access to capital, which tends to be scarce in Canada

Question

Quizplus · Accepted Answer

Multinational firms may locate their production facilities in foreign countries to take advantage of lower labor costs. This is often the case in countries where there is a high supply of educated workers who are willing to work for lower wages than in Canada. By reducing labor costs, multinational firms can increase their profits and competitiveness.

What Is a Major Reason Multinational Firms Headquartered in Canada