Which of the following statements is true of subcontracting?
A)Subcontracting uses subcontractors who have limited knowledge of a company's local culture
B)Subcontracting usually results in high import duties and labor costs
C)Subcontracting is not an option for mail-order companies
D)Subcontracting can unintentionally result in child labor or other unethical business practices

Question

Quizplus · Accepted Answer

Subcontracting can unintentionally result in the use of unethical business practices such as child labor or poor working conditions if the subcontractor is not properly vetted or monitored. The other options are incorrect as subcontractors are often chosen for their knowledge of local culture (A), subcontracting can actually reduce import duties and labor costs (B), and subcontracting can be an option for mail-order companies (C).

Which of the Following Statements Is True of Subcontracting