Elision Inc., an American software development company, outsourced its support operations to Luzenza, an Asian nation, because it found that Luzenza has a large cohort of English-speaking college graduates who are ready to work for one-fourth the pay of comparable American workers. Which of the following is most likely to have influenced Elision Inc.'s decision to outsource its support operations to Luzenza?
A) Inflow of innovation
B) Growth of domestic industries
C) Reduced risk
D) Access to factors of production

Question

Quizplus · Accepted Answer

Elision Inc. likely outsourced to Luzenza to access cheaper labor, a key factor of production, due to the lower wages of English-speaking graduates there.