Which of the following accounts for why some American manufacturing companies have located factories in Mexico? Abundant capital resources,

A supply of inexpensive labor

Favorable climate conditions,

Political stability in the region

The correct answer is B. A supply of inexpensive labor

Explanation:

Manufacturing most products in Mexico is cheaper than doing this in the U.S. The main reason for this is that in Mexico labor (workers needed for production) is cheaper than in the U.S. This factor is related to the fact the currency in Mexico has less value than the currency in the U.S. and the social, economic, cultural conditions are different. Besides this, production can be easily controlled in Mexico because this borders the U.S. According to this, one factor that makes some American companies locate factories in Mexico is the supply of inexpensive labor.

1-5 2-7 3-4

explanation: