Why do iconic American brands like Levi's and Converse make their products in places like China or Indonesia?
A. • There are no factories in America.
B. • Factory labor there is much more expensive
C. • Factory workers there are more highly trained and skilled.
D. • Factory labor there is much cheaper.
D. • Factory labor there is much cheaper.
D. • Factory labor there is much cheaper.
Iconic American brands like Levi's and Converse choose to manufacture their products in places like China or Indonesia because factory labor there is much cheaper. These countries generally have lower labor costs due to factors such as lower wages and less stringent labor regulations. This allows companies to produce their goods at a lower cost, which can be beneficial for profitability and price competitiveness in the global market.
The correct answer is D. Factory labor in places like China or Indonesia is generally much cheaper compared to labor costs in the United States. This is one of the main reasons why iconic American brands like Levi's and Converse choose to manufacture their products in these countries.
To find the answer, we can use a few methods. One way is to look at the brands' official websites or news articles to see if they provide any information about their manufacturing locations. Often, brands mention their global supply chains and may explain why they choose to manufacture in certain countries.
Additionally, we can also consider the factors that influence manufacturing decisions. Cost is a fundamental factor, and labor costs in countries like China or Indonesia tend to be lower due to various reasons such as lower wages and different labor regulations. This makes manufacturing in these countries more economically viable for many companies.
It's important to note that labor costs are not the only consideration for choosing manufacturing locations. Factors like access to raw materials, infrastructure, logistics, and market demand also play a role in these decisions.