Question

Quitor Inc., which is based in the U.S., contracts with Falconnien Suppliers, a small-scale supplier in Taiwan, to manufacture its computers and tablets across the world. This strategy by Quitor Inc. is an example of _____.
a) ​joint venture
b) ​franchising
c) ​exporting
d) ​foreign outsourcing

Answer 1

Answer:

The correct option is (d)

Explanation:

Foreign outsourcing refers to the practice getting goods manufactured or distributed by some other company located outside home country. This is a very good strategy if cost reduction is the main motive of parent company.

Activities are outsourced to a company located in a lesser developed countries as they offer good services in much reduced costs. In this case, Quiter Inc., a US company outsourced to a supplier based in Taiwan to manufacturing computers across the world. This is an example of foreign outsourcing.