Economics 2281 · O Level · The factors of production

The factors of production — practice question

Private multinational clothing companies run businesses in developing countries in order to lower their average production costs. Which characteristic of developing countries draws them for this reason?

  • AIn developing countries, clothing workers receive low wages.
  • BIn developing countries, foreign managers are allowed to pay no income tax.
  • CIn developing countries, multinationals are allowed to take profits out of the country.
  • DIn developing countries, there is a large market for fashion clothing.

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