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lisabon 2012 [21]
3 years ago
8

This refers to manufacturing companies moving plants from U.S. cities to areas with

Social Studies
1 answer:
Pie3 years ago
4 0

Answer:

Capital flight

Explanation:

The purpose of Capital flight is to increase the profit of the company's owner.

By moving the company to areas with lower GDP, the company owners gained these following benefit:

- They reduce the amount of salaries that they have to pay to their workers.

- They can obtain resources material at a cheaper cost compared to purchasing it on the States.

- They have to pay lower taxes.

All of the things above contribtued to the increase in the company's overall profit.

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