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why do some foreign companies build factories in Mexico

Sagot :

Some foreign companies build factories in Mexico, because it is cheaper to pay the factory workers in the United States. This means that companies would rather build their factories in Mexico, where the minimum wage is lower than in the United States and where workers may have fewer rights and labor unions, so that they can continue to make more money and spend less on giving wages to their workers. This is an example of cheap labor.
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