Champion Works Inc. is an animation company, headquartered in the Unit

QUESTION

Champion Works Inc. is an animation company, headquartered in the United States.

The CEO of the company has decided to outsource some of the production to companies in developing countries, as the firm seems to be losing out on its competitive advantage. This decision to shift functions or processes to less developed countries is most likely due to their:

A. strong intellectual property rights laws.

B. lower labor costs.

C. accessibility to better technology.

D. sophisticated infrastructure.

E. currency appreciation.

ANSWER

B