Explain how labor costs affect where multinational corporations choose to make their products.

see below

Explanation:

Multinationals are large corporations that operate in multiple countries. They have their headquarter in their home country and at least one branch in a different country. Multinationals are motivated to operate in different countries because capital is relatively mobile compared to cheaper labor and materials.

Labor constitutes a huge percentage of the company's expenses. A high wage bill may cripple the growth of a business. To avoid huge wage bills, companies expand to countries with relatively cheaper labor. A business can operate profitably by manufacturing in a country with lower labor costs.

Multinationals are known to shift operations between countries. If labor conditions are not favorable in one country, they can move to other countries with better and lower labor costs.

i would say their habit of breaking down.

answercountries with higher real income per capita tend to have higher levels of this index.