Question

Prextos Corp., after incurring losses, decides to move its manufacturing unit to a foreign location where it would get labor at cheaper rates. This way it plans to make profit. In this scenario, Prextos is planning to employ _____ to cut down its losses.

Answer 1

Offshoring

Step-by-step explanation:

offshoring is the process of moving an aspect of a business process overseas with the intention of reducing cost.

A firm can move its manufacturing process from its own parent country to another country (usually where the labour rate and cost of raw materials is cheap compared to what it obtainable in its home country) in other to reduce its cost of production thereby increasing its added value.

From the above explanation, we can conclude that Prextos is planning to employ Offshoring to cut down losses.