If company X is successfully outsourcing its production of T-shirts to China,it is

Question

​If company X is successfully outsourcing its production of T-shirts to China,it is

Quizplus · Accepted Answer

By outsourcing production to China, company X is able to take advantage of lower labor costs and increase their profitability. In turn, this creates wealth in China by providing employment opportunities and allowing labor to be used in a higher value way than it might otherwise be used. It does not necessarily destroy wealth, as option B suggests, because the money saved on labor costs can be reinvested in the company or used to provide additional benefits to the employees or shareholders. While it is true that outsourcing can sometimes lead to negative consequences such as job loss or lower wages in the home country, overall it is a legitimate business strategy that can benefit both the company and the global economy.

​If Company X Is Successfully Outsourcing Its Production of T-Shirts

If Company X Is Successfully Outsourcing Its Production of T-Shirts