Why might a multinational business choose to locate production in a country with lower labour costs?

Q: How do I try a free CIE Business Studies question?

Just tap any of the four options on this page — no signup, no card, nothing to install. You'll see the correct answer and a full mark-scheme-style explanation within a second. Each visit shows a fresh randomly-picked question from the live CIE IGCSE Business Studies bank, so you can keep refreshing to try different ones before deciding whether to create a free account for daily access.

Q: Is Kramizo really free for CIE Business Studies students?

Yes — completely free. Every student gets 45 questions a day on the free plan, across any board and any subject, with no card required and no trial countdown. Kramizo's optional Pro plan removes the daily cap and adds analytics, but the free plan is genuinely free forever. We make money from the small percentage of students who choose to upgrade — not from selling data or ads.

Q: Are the Business Studies questions aligned to the CIE IGCSE syllabus?

Every question is written against the published CIE IGCSE Business Studies syllabus and reviewed for accuracy before being added to the bank. We match the command words (state, describe, explain, evaluate), mark allocations, and difficulty tier you'll see on real CIE past papers. Explanations are written in the style of official examiner mark schemes so students learn exactly what marks are being awarded for.

Question

Why might a multinational business choose to locate production in a country with lower labour costs?

Accepted Answer

To reduce its overall costs and increase profitability — Lower labour costs directly reduce a multinational's total costs of production, which can improve profit margins or allow lower prices to remain competitive. Relocating production does not necessitate raising selling prices. International trade regulations are not the primary motivation for cost-driven location decisions. Reducing quality is not a business objective linked to lower labour costs.

Answer

To comply with international trade regulations

Answer

To decrease the quality of its output

Answer

To increase the selling price of its products

Answer

To reduce its overall costs and increase profitability

One real Business Studies question.No signup. 30 seconds.

One real Business Studies question.
No signup. 30 seconds.