Question

Which is not a reason why a company might decide to set up facilities in another country
a. to compete with other companies
b. to increase tariffs
c. to access additional raw materials
d. to locate cheaper labor?

Answer 1

The Correct answer is B "TO INCREASE TARIFFS" Tariffs are a tax that a country puts on goods imported, that means if you moved to a different country your company would have to pay the tariffs, so to combat the price of tariffs, and why they moved in the first place, the rest of the answers would be correct. Because it must be cheaper.