U. s. companies have made fewer manufacturing contracts with china in the last few years, preferring other countries in the region. which of the following is a potential reason? a. china has most-favored-nation trade status with the united states. b. china has large reserves of cheap labor and can produce inexpensive goods. c. china's standard of living has increased, and workers are requesting more pay. d. shipping costs from china over the pacific ocean have decreased.

The correct answer is C

Explanation:

Standard of living is the one of the most vital factor which is need to be considered while contracting with any country, as it involves factors as a whole availability and the quality of employment, housing affordability, class disparity and poverty rate, gross domestic product, hours of work are required to purchase necessities and inflation rate.

So, if the country standard of living is increasing, it is good for a country. Therefore, US companies made contracts with China because of standard of living is increasing and the workers are demanding more pay.

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