Question

Identify and explain one reason why the United States would outsource their manufacturing to a country such as China.

Answer 1

Many United State companies have outsourced their manufacturing to eliminate the overhead cost associated with operating a manufacturing facility stateside. These overhead costs include utilities, such as gas, electric and water, and the maintenance required to operate production equipment. Other overhead costs include indirect labor such as quality assurance personnel, equipment technicians, material handlers, and shipping and receiving personnel.