Why have so many U.S. factories moved to Mexico?

A. The mild temperatures speed production.
B. Mexico is a source of cheaper labor.
C. There is no room to build in the United States.
D. The United States has a shortage of skilled laborers.

The main reason for moving so many factories is a combination of abundant cheap labor and lower taxes on capital. Mexico is not as expensive, over all, to live in as compared to the U.S.. Mexico also has some differences in their tax code regarding taxes on capital and investment which further encourage factory migration.

Answered by W0lf93 | 2024-06-11

Answer: Mexico is a source of cheaper labor.
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Answered by brooklynngreeneeee | 2024-06-25

Many U.S. factories have moved to Mexico primarily because Mexico offers cheaper labor, which significantly reduces production costs for companies. This shift was largely accelerated by the implementation of NAFTA in 1994, allowing for easier trade and providing greater market access. As a result, companies benefit from lower expenses while boosting employment in Mexico through the establishment of facilities known as maquiladoras.
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Answered by brooklynngreeneeee | 2024-08-16