MedFirst Instruments, a U.S. company, invests in a manufacturing facility in Mexico. The production from the Mexican facility is used entirely to serve the company's U.S. customers. MedFirst Instruments' activity is called
A) onboard production.
B) offshore production.
C) licensing.
D) contract manufacturing.
E) vertical integration.

Question

Quizplus · Accepted Answer

Offshore production refers to a company setting up a facility in another country to produce goods or services, often to take advantage of lower costs, while still serving its home market.