Quitor Inc., which is based in the U.S., has most of its major products manufactured by the Falconn Technology Group, which is based in Taiwan. This strategy by Quitor Inc. was taken to:
A) expand its brand name.
B) engage in countertrade.
C) improve the balance of trade of the U.S.
D) reduce the production cost.

Question

Quizplus · Accepted Answer

Quitor Inc.'s strategy of having its major products manufactured by a Taiwanese company suggests that the company aims to reduce its production cost. This is because manufacturers based in countries like Taiwan typically have lower labor and production costs compared to those based in the U.S.