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What is a benefit to an Australian clothing company of outsourcing its manufacturing overseas? A - HSC - SSCE Business Studies - Question 15 - 2018 - Paper 1

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What is a benefit to an Australian clothing company of outsourcing its manufacturing overseas? A. It can control the production costs. B. It can lower human resour... show full transcript

Worked Solution & Example Answer:What is a benefit to an Australian clothing company of outsourcing its manufacturing overseas? A - HSC - SSCE Business Studies - Question 15 - 2018 - Paper 1

Step 1

Identify the benefit of outsourcing

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Answer

In the context of an Australian clothing company outsourcing its manufacturing overseas, the most significant benefit lies in the potential to reduce expenses. This includes lowering costs related to human resources due to different regulations and labor markets in foreign countries, which can lead to overall savings. Option B states, 'It can lower human resource compliance costs,' which aligns with this benefit.

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