Two-stimulus question
Where to build the factory
- Units 2, 4 and 7
- 7 points
- About 25 minutes
Seven short parts (A–G) built around two sources (data, images and/or maps), drawing on ideas from at least two units. You read each source, compare or connect them, and explain them with course ideas, often across different scales. On the exam: Question 3 of 3 in the 1-hour-15-minute free-response section (Section II). The three questions together are 50% of your exam score, so each is worth about 16.7%; 7 points, one for each part A–G. College Board suggests about 25 minutes per question, including up to 5 minutes to plan. No calculator.
The question and its sources
A car-parts company headquartered in Country H, a high-income country, is deciding where to build a new factory to supply car assembly plants in Country H. Use the two sources below to answer all seven parts, (a) through (g). Write in complete sentences.
Source 1: Selected costs for a factory supplying car assembly plants in Country H, 2025
| Factory location | Average manufacturing wage (US$ per hour) | Shipping time to Country H's assembly plants (days) | Tariff on parts entering Country H (%) |
|---|---|---|---|
| Country H | 32.00 | 1 | 0 |
| Country I (borders H; has a free trade agreement with H) | 5.10 | 3 | 0 |
| Country J (overseas; no trade agreement with H) | 2.40 | 32 | 12 |
Source: Hypothetical data
Source 2: Map of northern Country I (described in words)
An export-processing zone (EPZ) lies along Country I's border with Country H, next to two highway border crossings and a rail border crossing.
Labels show that most factories in the EPZ are owned by companies headquartered in Country H, Japan and Germany.
A deep-water container port lies on Country I's coast, 300 km south of the EPZ, connected to it by a new rail line.
A note states that the population of the cities inside the EPZ grew from 0.4 million in 1995 to 1.6 million in 2025.
Source: Hypothetical map, described in words
Suggested time: 25 minutes
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Part (a)
1 pointUsing Source 1, compare the manufacturing wages in Countries I and J with the wage in Country H.
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Part (b)
1 pointUsing Source 1, explain why the company might choose to build its factory in Country I rather than Country J, even though wages are higher in Country I.
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Part (c)
1 pointExplain how just-in-time delivery could influence the company's location decision.
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Part (d)
1 pointUsing Source 2, explain how the location of the EPZ supports manufacturing for export.
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Part (e)
1 pointUsing Source 2, explain how the EPZ is likely to have affected migration within Country I.
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Part (f)
1 pointExplain how a free trade agreement between Countries H and I could limit Country I's sovereignty.
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Part (g)
1 pointUsing BOTH sources, explain the degree to which world-system theory or dependency theory explains Country I's role in the global economy.
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