Which of the following concepts explains the decision to relocate market-oriented factories in the United States from the Midwest and Northeast to locations in the southern United States or Mexico?ResponsesComparative 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.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.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.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.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.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.Complementarity, because the regional economy of the midwestern and northeastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.Complementarity, because the regional economy of the midwestern and northeastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.Post-Fordist production, because traditional midwestern and northeastern manufacturing centers in the United States are unable to keep up with the technological changes of modern industry.
Question
Which of the following concepts explains the decision to relocate market-oriented factories in the United States from the Midwest and Northeast to locations in the southern United States or Mexico?ResponsesComparative 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.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.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.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.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.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.Complementarity, because the regional economy of the midwestern and northeastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.Complementarity, because the regional economy of the midwestern and northeastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.Post-Fordist production, because traditional midwestern and northeastern manufacturing centers in the United States are unable to keep up with the technological changes of modern industry.
Solution
The decision to relocate market-oriented factories in the United States from the Midwest and Northeast to locations in the southern United States or Mexico can be explained by the concept of Comparative advantage. This is because products can be made more efficiently in the southern United States and Mexico due to lower operating costs and wages. Additionally, the manufactured products are easily transported to major United States markets.
Another concept that explains this decision is Just-in-time delivery. This is 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.
The concept of Post-Fordist production also explains this decision. This is because traditional midwestern and northeastern manufacturing centers in the United States are unable to keep up with the technological changes of modern industry.
The concept of Growth poles and Complementarity are less relevant in this context. Growth poles refer to the idea that 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. Complementarity refers to the idea that the regional economy of the midwestern and northeastern United States is shifting to the service sector, and there is little interest in maintaining manufacturing at these locations. However, these concepts do not directly explain the decision to relocate factories.
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