Intel produces microchips in China and Costa Rica,
Using subsidiaries that it owns.Mattel, in contrast,
Arranges for the production of the Barbie doll in several
Different countries.Which of the following statements
About the two companies is CORRECT?
A)Intel is involved in offshoring, whereas Mattel is involved in offshoring.
B)Intel and Mattel are both involved in outsourcing.
C)Intel and Mattel are both involved in offshoring.
D)Both companies use FDI.

Question

Quizplus · Accepted Answer

Intel's use of subsidiaries in China and Costa Rica to produce microchips is an example of offshoring, which involves relocating operations to another country. Similarly, Mattel's arrangement to produce Barbie dolls in several different countries is also an example of offshoring. Therefore, both companies are involved in offshoring.

Intel Produces Microchips in China and Costa Rica