Question

Deydey620

Answer 1

Answer;

Outsourcing; Production cost

Elena works for a company that handles product testing for a company based in Germany. This work is an example of Outsourcing which companies use to reduce production cost by contracting some business activities to other businesses.

Explanation;

-Outsourcing is  the practice of using outside firms to handle work normally performed within a company.

For example; Small companies routinely outsource their payroll processing, accounting, distribution, and many other important functions, often because they have no other choice. Many large companies turn to outsourcing to cut costs. In response, entire industries have evolved to serve companies' outsourcing needs.

-The benefits of outsourcing include:

• Cost cutting; outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business.
• Increase efficiency
• Reduce labor costs
• Start new project quickly, among other benefits

Answer 2

The first answer is is outsourcing as the product is beign made in a foreign country and they do this to reduce production cost, where they do not have to gather raw materials for themselves.