The reason why a company from the US would open a factory in China are:
- to take advantage of affordable land prices
- to take advantage of abundant resources
- to take advantage of lower labor costs
- to take advantage of favorable tax laws
A corporation may decide to take its production business abroad fro different reasons. Most of these reasons have been stated in the options that I have listed above.
Businesses are always on the look out for those opportunities that would be more favorable for them.
These opportunities must be able to maximize their profits and also lower their costs of production.
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