Which is the best example of outsourcing? a. a us shoe company opens a factory in china and hires chinese workers to make shoes. b. a us shoe company opens a factory in the us and hires us workers to make shoes. c. a us shoe company opens a factory in the us and hires chinese workers to make shoes. d. a chinese shoe company opens a factory in china and hires chinese workers to make shoes.

The correct answer is A.

Outsourcing is the businesses of establishing a part of an existing company abroad in order to perform services and create goods that were traditionally produced in house ( in the company's own country ).

The purpose of outsourcing is cost-cutting. This practice is very controversial because it causes the loss of domestic jobs, particularly in the manufacturing factor.  

Outsourcing can help companies to reduce their labor costs. Businesses can also avoid expenses associated with overhead, equipment and technology.

A

It is cheaper for the company to have the goods made in China.

was the answer correct?

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