Companies outsource their operations because
A) the weather is nicer in other countries.
B) employees in other countries take less sick leave.
C) governments in other countries allow them to operate.
D) labor costs are lower.
E) no one wants to do the work domestically.

Question

Quizplus · Accepted Answer

Companies outsource their operations to countries where labor costs are lower, allowing them to reduce their expenses and increase profits. This is often the main driving factor behind outsourcing decisions. Other factors such as favorable government policies, availability of skilled workers or access to new markets may also play a role, but cost savings are typically the primary motivation.

Companies Outsource Their Operations Because