Why do firms locate production overseas rather than exporting finished goods?
A)Shipping costs
B)Firms seek to extend corporate control overseas
C)Imperfect factor markets
D)All of the above

Question

Quizplus · Accepted Answer

A) Shipping costs can be reduced by producing goods closer to the market.
B) Firms may seek to extend control overseas by owning production facilities or using local labor.
C) Factor markets, such as labor and capital, can be imperfect in different countries, leading to cost advantages in some locations.

Why Do Firms Locate Production Overseas Rather Than Exporting Finished