Which of the following concepts explains the decision to re-locate market-oriented factories in the United States from the Midwe

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1 month ago

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Which of the following concepts explains the decision to re-locate market-oriented factories in the United States from the Midwe

st and North east to locations in the southern United States or Mexico?
A. Comparative advantage, because products can be made more efficiently in the southern United States and Mexico. Operating costs and wages are lower, and the manufactured products are easily transported to major United States markets.
B. Growth poles, because governments in southern United States cities and Mexico strive to stimulate economic development by providing a guaranteed market for all products manufactured at these locations.
C. Just-in-time delivery, because the United States population is shifting to the south and west, and the Mexican population is growing. It is critical to produce goods closer to the consumer base to reduce shipping times.
D. Complementarity, because the regional economy of the midwestern and north eastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.
E. Post-Fordist production, because traditional midwestern and north eastern manufacturing centers in the United States are unable to keep up with the technological changes of modern industry.

Geography

1 answer:

agasfer [284] · Answer 1 · 2026-02-19T22:20:07+03:00

Answer: A. Comparative advantage, because the southern United States and Mexico can produce goods more efficiently. Operating expenses and labor costs are lower, and it’s easier to transport the manufactured goods to significant markets in the U.S.

Explanation: Comparative advantage refers to a geographic area's ability to manufacture a product at a more economical rate than elsewhere. This is achieved through reduced wages and operating expenses in both Mexico and the Southern states, leading to lower overall costs. Their proximity to the Midwest and Northeast contrasts with outsourcing destinations like China. Consequently, relocating factories to these areas is a logical decision.