Final answer:
The likely answer when a product can be made more efficiently by another country and bought more cheaply is trade. This option allows countries to focus on their comparative advantages and benefit from each other's lower opportunity costs, enhancing overall economic efficiency.
Step-by-step explanation:
If another country makes a product more efficiently and you can buy it cheaper than you can make it, the likely answer is trade. Trade enables countries to specialize in the production of goods where they have a comparative advantage and then exchange these goods, thus benefiting from lower opportunity costs. For example, if Mexico produces more shoes and trades for refrigerators made in the United States, Mexico benefits from the lower opportunity cost of refrigerators in the U.S., while the U.S. benefits from the lower opportunity cost of shoe production in Mexico. This relationship is mutually advantageous for both countries and highlights the positive aspects of international trade.
On the other hand, the term outsourcing refers to the practice of moving factories and jobs to other countries by multinational corporations seeking out the lowest cost options, which can result in lower job availability in developed countries but may lead to lower product costs for consumers thanks to cheap labor sources and the added value of manufacturing staying with the multinational corporations.