Which of the Following Factors Most Likely Would Explain Why

question 80

Multiple Choice

Which of the following factors most likely would explain why a U.S. company would choose to operate in the United States despite much lower wages in Mexico?

• A) The low cost of transportation between the two countries
• B) The lower productivity of Mexican workers
• C) The absence of significant trade barriers
• D) The presence of many Japanese companies in Mexico

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Definitions:

Cash Discount

A reduction in the price of an item for sale, offered in exchange for immediate payment or payment within a short period.

Partial Payment

A payment made that is less than the full amount due on a debt or obligation.

Welding Supplies

Materials and tools used in welding processes, including electrodes, gases, and safety equipment.

Gross Cost

The prime cost and all charges paid by the principal.