When a US Company Hires a Company Outside of the United States

question 4

Multiple Choice

When a U.S. company hires a company outside of the United States, it uses a technique called ________.

• A) offshoring
• B) offtracking
• C) telecommuting
• D) exporting

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Definitions:

Nonlabor Resources

Inputs in production that do not involve human labor, such as capital, land, and natural resources.

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, holding other inputs constant.

Total Product

The total output or production achieved by a firm with a given amount of resources.

Average Product

The output per unit of input, calculated by dividing the total product by the quantity of input, reflecting the efficiency of production.