A u. S. Company imports raw materials from africa, has manufacturing facilities in china, and uses a company in india for assembly. This company is benefiting from __________ economies.

Respuesta :

A U. S. Company business imports raw materials via Africa, operates factories in China, and outsources assembly to an organization in India. This business reaps the rewards of "location" economics.

Define the term location economics?

Cultural, economic, legal, and natural aspects differ amongst nations.

  • The cost of producing many different commodities is directly impacted by these variances.
  • Businesses search the world over for and work under the conditions that are best for their products.
  • Production of a goods in the best possible conditions might give producers a cost edge over rivals. These are referred to as location economies.
  • Before carrying out any such action, it is important to carefully consider a number of important aspects, including transportation costs and trade barriers.

An American company maintains plants in China, buys raw materials via Africa, and outsources assembling to a company in India.

As a result, this company benefits from "location" economics.

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