True Diva Inc.,a reputed brand for women's apparel and accessories,uses contract manufacturers in different countries.The company benefits because of the lower cost of labor and minimal government regulations in other countries than its home country.This is an example of _____.
A)bartering
B)benchmarking
C)outsourcing
D)reverse engineering
E)franchising

Question

Quizplus · Accepted Answer

This is an example of outsourcing, where a company hires external firms to perform certain tasks or services that could be done internally, often to reduce costs or focus on core business activities. True Diva Inc. is outsourcing its manufacturing to take advantage of lower labor costs and fewer regulations in other countries.