What is the most common reason why U.S. organizations hire employees in foreign countries?

• A. To avoid domestic competition
• B. To comply with international labor regulations
• C. To access advanced technology available abroad
• D. To reduce labor costs and increase profitability

Answer: (D)

Verified step by step guidance

1. Understand the context of why organizations hire employees abroad, focusing on economic incentives rather than regulatory or competitive reasons.
2. Recognize that labor cost differences between countries can significantly impact a firm's overall expenses and profitability.
3. Consider that hiring in foreign countries often allows firms to pay lower wages compared to domestic labor markets, which reduces production costs.
4. Acknowledge that this cost reduction can lead to increased profitability for the organization, which is a primary motivation.
5. Conclude that the most common reason U.S. organizations hire employees in foreign countries is to reduce labor costs and increase profitability.