Question

Why do many American companies prefer China for their component manufacturing?

• A. The Chinese government contributes to the companies' profit.
• B. There is no labour law in China.
• C. Goods can be manufactured cheaply in China.
• D. All American companies have their subsidiaries in China.

Answer 1

The correct option is C Goods can be manufactured cheaply in China.

China offers cheap labour to the manufacturing units. Thus, manufacturing in China is comparatively cheap. It attracts many American companies to choose China as their manufacturing operation location.