Labor wage rates appear to be a key locational determinant as supply chains become more global in nature.

Question

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As companies seek to reduce costs and take advantage of economies of scale, they often look for locations where labor costs are low. This is particularly true for industries where labor is a significant cost factor, such as manufacturing. Therefore, labor wage rates can play a crucial role in determining the location of supply chains in a more globalized context.

Labor Wage Rates Appear to Be a Key Locational Determinant