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Which economic situation is most likely to cause outsourcing to foreign countries?

A) A company with healthy finances hires foreign workers at a high salary because they are better trained and educated.


B) A strong U.S. economy leads companies to open new businesses in foreign countries because they have excess funds.


C) A company struggling financially hires a foreign company to assemble products because foreign labor is cheaper.


D) A weak U.S. economy causes a company to sell its business to a foreign investor for a profit.

User SulNR
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Answer:

The economic situation that is most likely to cause outsourcing to foreign countries is:

C) A company struggling financially hires a foreign company to assemble products because foreign labor is cheaper.

Option C is the correct answer. When a company is struggling financially, it may choose to outsource some of its operations or production to foreign countries where labor is cheaper. This can help the company reduce its costs and remain competitive in the market. By outsourcing, the company can take advantage of lower labor costs and other cost savings associated with doing business in a foreign country. However, outsourcing can also have negative consequences, such as loss of jobs in the home country and lower quality control of the outsourced products or services.

Options A, B, and D are not the most likely situations to cause outsourcing. Option A suggests that a company hires foreign workers at a high salary because they are better trained and educated, but this would not necessarily lead to outsourcing. Option B suggests that a strong US economy leads companies to open new businesses in foreign countries because they have excess funds, but this would not necessarily lead to outsourcing either. Option D suggests that a weak US economy causes a company to sell its business to a foreign investor for a profit, but this is not the same as outsourcing.

User Systemhalted
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