Given the fact that NAFTA is now effective among the U.S., Mexico and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because:
A. it will improve the image of its goods.
B. Mexico has lower wages than Sri Lanka.
C. Mexico has better infrastructure than Sri Lanka.
D. moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.
E. workers in Mexico are more skilled than those in Sri Lanka.
Answer: moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.