Question

2.  Which of the following examples best illustrates the concept of outsourcing? (1 point)

Answer 1

The correct answer is B) An American toy company cheaply manufacturing its products in China.

Outsourcing refers to when a business/company has their products developed elsewhere in the world. Usually, outsourcing is caused by financial factors. For example, many American companies have their goods made in China because the wages needed to pay workers and the overall costs are much cheaper than in the United States.

This shows why B is the correct answer.