The Maquiladora industry along the Texas-Mexico border 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 practice of using cheap labor in Mexico for assembling products is an example of outsourcing. The Maquiladora industry along the Texas-Mexico border is a common example of outsourcing in which companies relocate their production to lower-wage countries to reduce labor costs and compete with lower-priced imports.

The Maquiladora Industry Along the Texas-Mexico Border Uses Cheap Labor