Areas with higher than average labor costs are almost always at a major disadvantage when trying to attract new businesses.

Question

Quizplus · Accepted Answer

Although the cost of labor is an important consideration in the location decision of some firms, it is far from the only factor that firms must consider. Other considerations might include the availability of cheap resources (such as water, coal, or electricity), proximity to customers or to preferred modes of transportation, low taxes or special government incentives, and quality of life considerations (such as climate, recreational opportunities, education systems, and crime rates). High wage areas that have some or all of these advantages might be attractive to many firms despite the high labor costs.

Areas with Higher Than Average Labor Costs Are Almost Always