Which theory best explains a toy company that has manufacturing centres in China,India,and Guatemala,but a business base in the United States and Canada?
A) dependency theory
B) world systems theory
C) modernization theory
D) new international division of labour theory

Question

Quizplus · Accepted Answer

The new international division of labour theory suggests that in the current global economy, there is a separation of manufacturing and business functions among different countries. In this case, the toy company has its manufacturing centres in China, India, and Guatemala, which are known to have low labour costs, while its business base is in the United States and Canada, which may have higher overhead costs. This division of labour allows the company to take advantage of cost savings while still being able to access the consumer markets in North America.

Which Theory Best Explains a Toy Company That Has Manufacturing