JAMB UTME - Geography - 1999 | Green Bridge CBT

Question 1 Report

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

production costs

transport costs

raw material shortages

comparative advantage

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.

Read lesson note on Industry (WAEC)

Read lesson note on Physical Geography (JAMB)






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