Why have Major League Baseball teams signed many Central and Latin American players?

• A. They are high-cost superstars
• B. They constitute a large pool of relatively cheap and skilled labor
• C. They are only scouted in minor leagues
• D. They come from less-competitive regions

Answer: (B)

The main idea is that Major League teams are drawn to a huge, talented talent pool in Central and Latin America that can be acquired at a relatively low initial cost. These regions have long, deep baseball cultures with skilled players who can be signed as international prospects at young ages for modest signing bonuses. Teams then develop these players in the minor leagues, hoping to uncover stars who, if they reach the majors, provide a high return on a relatively small upfront investment.

This is why teams pursue international free agents from places like the Dominican Republic, Venezuela, Puerto Rico, and others: the combination of abundant high-skill players and lower early-costs creates a cost-effective path to building a deep, competitive roster. While some players do command big bonuses or later become premium players, the overall strategy centers on leveraging a large supply of skilled labor at a favorable cost.

Other options don’t fit as well because they either imply high immediate cost, or suggest scouting happens only in the minor leagues, or mischaracterize the regional talent landscape as less competitive.