Question $9$

Valid reasons to open a new production facility in Latin America include

the exceptionally high profit margins that can be earned on the sales of both branded footwear and private$-$label footwear in Latin America.

lower production labor costs $($as compared to North America and Europe$-$Africa$)$ and the ability to avoid paying import tariffs on all pairs produced and sold in Latin America.

the fact that Latin America is the lowest cost region in the world in which to produce and market athletic footwear having an $\frac{S}{Q}$ rating of $5-$stars or higher.

the strong preference that Latin American consumers have for purchasing branded footwear with a lower S$//$Q rating, as compared to consumers in the Asia$-$Pacific region.

the fact that branded footwear demand in Latin America is bigger and growing faster than in any of the other $3$ geographic regions.

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