< Previous Question 38 Nex Valid reasons to open a new production facility in Latin America include the strong preference that Latin American consumers have for purchasing branded footwear with a lower S//Q rating, as compared to consumers in the other 3 geographic regions. the higher profit margins that can be earned on branded sales in Latin America. the lower base wages that have to be paid to production workers and supervisors in Latin America, as compared to workers and supervisors in Europe-Africa and North America. the cheaper price that has to be paid to purchase superior materials Latin America. the much weaker competition in the branded footwear segment that typically prevails in Latin America and constitutes copyright violation.