International companies are moving their factories out of Mexico to India and Africa.
Explanation:
Like all businesses, large international corporations want to maximize their profit. The process of globalization has helped them greatly in this by opening the borderds in an economic sense and allowing the corporations to establish facilities in countries where the labor force is much cheaper. The choices are becoming larger and larger though, so these companies are constantly on the look for new destinations for their facilities.
The countries like Mexico and China were the most attractive until recently, but the international corporations are now moving away from them because their increased standards mean that the labor force is becoming more and more expensive. Countries that are at a lower development level though seem to be more attractive, so India and Africa experience big economic boosts from this. With the labor force being much cheaper, more and more companies are constantly moving in, which on the other hand will have a negative effect on Mexico and China.
