The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of:
A) licensing.
B) joint venture.
C) outsourcing.
D) franchising.
E) none of these.

Question

Quizplus · Accepted Answer

The use of cheap labor in the Maquiladora industry along the Texas-Mexico border is an example of outsourcing, which involves the contracting of a company's business functions to an external entity in a different country. This lowers the cost of production and allows for cheaper prices for the consumers. Licensing, joint venture, and franchising all involve different types of partnerships and relationships between companies, but they do not necessarily involve the use of cheap labor for manufacturing or production. Therefore, the correct answer is C) outsourcing.

The Maquiladora Industry Along the Texas-Mexico Border on the Mexico