Many industries in Europe and America have established branches in South East Asia in order to reduce

Assessment: JAMB UTME - Geography - 1999 Subject: Geography

Question 1 Report

Many industries in Europe and America have established branches in South East Asia in order to reduce
Answer Details
Many industries in Europe and America have established branches in South East Asia in order to reduce production costs. This is because labor and other production costs are usually lower in South East Asia compared to Europe and America. By establishing branches in South East Asia, these industries can take advantage of the lower production costs and increase their profit margins. This trend is commonly known as outsourcing, where companies relocate their operations to countries where costs are lower.
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