Why Do Companies Based in Developed Countries Locate Their Production

question 149

Short Answer

Why do companies based in developed countries locate their production facilities in underdeveloped countries?

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Fair Insurance Policy

An insurance contract that is considered equitable, offering reasonable terms, coverage, and protection for all parties involved.

Premium

The amount paid for an insurance policy or the difference above the nominal or face value of a security.

Expected Value

The predicted value of a variable, calculated as a sum of all possible values each multiplied by the probability of its occurrence.