Post Utme Esut 2025 Geography Question 38

Practice objective / multiple choice question 38 from the 2025 Post Utme Esut Geography examination.

Post Utme Esut 2025 Geography Objective / Multiple Choice
Question 38 POST_UTME_ESUT • 2025 • GEOGRAPHY • objective

A firm producing textiles in a developing country is considering relocating to a country with a lower labor cost. Using the concept of comparative advantage, explain why this relocation might be beneficial to the firm.

Answer Options

Correct Answer A. The firm can take advantage of the lower labor cost to increase its profit margin.
B. The firm can use the lower labor cost to increase its production capacity.
C. The firm can use the lower labor cost to reduce its production costs.
D. The firm can use the lower labor cost to increase its market share.
Correct Answer
A
Correct Option:
The firm can take advantage of the lower labor cost to increase its profit margin.

About This Question

This is Post Utme Esut 2025 Geography Question 38. It is one of the objective questions from the 2025 Post Utme Esut Geography examination.

View More Post Utme Esut 2025 Geography Questions More Post Utme Esut Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support