Rubicon Inc., an American guitar manufacturing company, signed a contract with a supplier in Umreia, an Asian country, to manufacture guitars. Rubicon then imported these products and sold them in its markets under its own brand name. Rubicon did this because of the availability of cheap labor in Umreia that substantially cut down Rubicon's cost of production. In this scenario, Rubicon is most likely involved in _____.

Question

Quizplus · Accepted Answer

Rubicon is involved in foreign outsourcing, as it is contracting a supplier in another country to produce goods at a lower cost, which it then imports and sells under its own brand.