Final answer:
The Maquiladora Company is an example of outsourcing that uses cheap labor in Mexico to lower the price of products for U.S. consumers.
Step-by-step explanation:
The Maquiladora Company, located along the Texas-Mexico border on the Mexico side, uses cheap labor for assembling products, which lowers the price for U.S. consumers. This is an example of outsourcing, a business strategy where a company hires another company or individuals outside of its organization to perform specific tasks or produce goods. In this case, the Maquiladora Company is outsourcing the labor-intensive assembly process to Mexico where labor costs are lower.
By outsourcing to Mexico, the Maquiladora Company can take advantage of the lower wages in the country, reducing production costs. These cost savings can then be passed on to U.S. consumers, resulting in lower prices for the products. This strategy helps the Maquiladora Company compete in the U.S. market by offering more affordable products to consumers.