When GM Moved Some of Its Manufacturing Operations to Mexico

question 15

Multiple Choice

When GM moved some of its manufacturing operations to Mexico to be closer to the American market, they were doing what's known as ________.

• A)nearshoring
• B)cost-benefit analysis
• C)offshoring
• D)coordination

---

Definitions:

Net Income

The total earnings a company makes after all expenses and taxes have been deducted from revenue.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation after deducting its liabilities, essentially the net worth attributable to shareholders.

Note Payable

A legal obligation representing a loan or promissory note that requires the borrower to repay the lender a certain amount of money at a future date or on demand.

Cash Payment

A transaction in which money is paid immediately at the time of purchase, not on credit.