Question

1. Why do you think the USA is one of the few countries that produce large passenger aircraft? Why do you think poor countries tend to make clothing for companies like Nike instead of Germany?

Answer 1

Large countries have huge resources at their disposal. They have funds, advanced technology and large skilled labour force. This is the reason that countries like USA produce large passenger aircrafts. It has the availability of all of these factors and so is considered for production.

Further, the poor countries lack huge funds or very sophisticated and advanced technology. Therefore, it looks for foreign funds which comes in the form of outsourcing contracts. Due to the availability of large labour force and poverty, more companies prefer locating their production in such poor or backward countries. It helps in reducing cost of production as well. The cloth manufacturing does not require advanced technology or skill as required in making passenger aircraft. Therefore, the poor countries tend to make clothing for companies like Nike instead of wealthy and advanced nations like Germany.

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