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.
The correct answer to the question is d. Factory labor in places like China or Indonesia is much cheaper. American brands like Levi's and Converse often manufacture their products in countries with lower labor costs in order to reduce the cost of production. This allows them to offer competitive prices to consumers.
To find the answer, one can consider factors such as production costs, labor availability, and market competitiveness. This information can be obtained through various sources, including industry reports, news articles, and company statements. Additionally, understanding basic economics principles, such as the concept of comparative advantage, can also help in comprehending why brands choose to produce their goods in certain countries.
d. Factory labor there is much cheaper.
One of the main reasons why iconic American brands like Levi's and Converse manufacture their products in places like China or Indonesia is because factory labor in those countries is significantly cheaper. By outsourcing production to countries with lower labor costs, companies can reduce their manufacturing expenses and increase their profit margins.
While it is true that some manufacturing facilities have been moved overseas due to the lack of factories in America, the primary driver is the cost advantage. Factory labor in countries like China and Indonesia can be significantly cheaper compared to the United States, making it more economically viable for companies to produce their products there.
Although the skill and expertise of factory workers may vary across different regions, it is not necessarily the main reason behind moving production overseas. Companies generally provide training and supervision to ensure the production quality meets their standards, regardless of the location.
In summary, iconic American brands choose to produce their products in countries like China or Indonesia mainly because the labor costs there are much cheaper compared to manufacturing in the United States.