Efficiency-seeking firms go to countries that have _____.
A) an abundance of natural resources and related transport and communication infrastructure
B) a strong demand for their products and services
C) world-class innovations (innovative individuals, firms, and universities)
D) economies of scale and abundance of low-cost factors

Question

Efficiency-seeking firms go to countries that have _____.
A) an abundance of natural resources and related transport and communication infrastructure 
B) a strong demand for their products and services 
C) world-class innovations (innovative individuals, firms, and universities) 
D) economies of scale and abundance of low-cost factors

Quizplus · Accepted Answer

Efficiency-seeking firms are looking for opportunities to reduce costs and increase profits. Therefore, they go to countries that have economies of scale and an abundance of low-cost factors, such as cheap labor, land, and resources. This allows firms to produce goods or services at a lower cost and remain competitive in the market.

Efficiency-Seeking Firms Go to Countries That Have _____