Question

Which of the following is an example of outsourcing?

Answer 1

C = maquiladors is an example of outsourcing

Answer 2

Answer:

C. Maquiladoras

Explanation:

The word "outsourcing" refers to a form of agreement whereby a company seeks the help of an outside party when it comes to fulfilling some of the company's processes (like manufacturing process).

Maquiladoras are factories that are located in Latin America that focuses on product assembly. They are often hired by companies in the USA in order to do the manufacturing of products for them. This is because, the cost of labor in these factories is cheaper when compared to the USA. This kind of activity is an example of outsourcing.