Montoya Group Inc. is an American firm based in Utah that manufactures and distributes mountaineering equipment such as carabiners, pulleys, harnesses, helmets, ice axes, crampons, etc. In an attempt to lower its production costs, the firm relocates some of its manufacturing facilities to China, which has much lower labor cost. Montoya Group Inc. uses which of the following strategies?

Question

Quizplus · Accepted Answer

Offshoring involves relocating business processes or production to another country to reduce costs, such as labor. Montoya Group Inc. moving its manufacturing to China exemplifies this strategy.