CuberTech, an American Electronics Company, Set Up Its Production Facilities

Multiple Choice

CuberTech, an American electronics company, set up its production facilities in Chuaga, an Asian country, because the workers in Chuaga work for about one-third the pay of American workers. This substantially lowered CuberTech's cost of production. This scenario is an example of _____.

A) direct investment
B) a joint venture
C) foreign outsourcing
D) foreign franchising