An American firm produces mobile phones and music players.The final assembly of these instruments is done in China due to the low wage rates in the country.Which of the following is being applied by the American firm in order to maintain minimized costs?

Question

Quizplus · Accepted Answer

An innovative production process is being applied by the American firm to maintain minimized costs by outsourcing the final assembly to China, where wage rates are lower, thus reducing production costs.

An American Firm Produces Mobile Phones and Music Players