Cooper Inc., an American computer manufacturing company, procures motherboards for its computers from Chinese motherboard manufacturers instead of producing them internally. Given this information, it can be said that:
A) Cooper is likely to evade import tariffs.
B) Cooper is likely to save on transportation costs.
C) Cooper is likely to save millions of dollars of investment.
D) Cooper is unlikely to face communication challenges with its vendors.

Question

Quizplus · Accepted Answer

C) Cooper Inc. is likely to save millions of dollars of investment by outsourcing motherboard production to Chinese manufacturers instead of investing in the infrastructure, technology, and workforce required to produce them internally.