The Major Reasons Why Mexico Has Recently Become a Major

question 85

Multiple Choice

The major reasons why Mexico has recently become a major manufacturing centre are

• A) cheap labour and low transportation costs.
• B) elimination of quotas and tariffs and low tax rates.
• C) low tax rates and cheap labour.
• D) cheap labour and elimination of quotas and tariffs.
• E) low transportation costs and low tax rates.

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Definitions:

Operating Lease

A leasing agreement allowing one party to use an asset owned by another party for a specified time period without ownership transfer.

Seller-lessee

An entity that sells an asset and then leases it back from the buyer, typically to gain capital while retaining the use of the asset.

Sale-leaseback Transaction

A financial transaction where one party sells an asset and then leases it back from the buyer, generally to free up capital while retaining the use of the asset.

Capital Lease

A leasing arrangement considered to have the economic characteristics of asset ownership for accounting purposes.