Which of the following statements is true about the location of production units over the past few decades?

Question

Quizplus · Accepted Answer

Over the past few decades, there has been a trend of shifting production units to emerging markets. These markets offer lower labor costs, which make production cheaper. Hence, the cost of production is low in these markets. Therefore, option C is correct. The other options are incorrect as there is a trend of shifting production from high-income to low-income countries, and the location of production for mature products can also be in low-wage countries. Additionally, shifting production to locations with lower wages does not guarantee sustained competitive advantage as other factors such as quality, innovation, and responsiveness to changing customer preferences also play a role.

Which of the Following Statements Is True About the Location