Answer: D

The argument suggests that Kingsland companies outsource to foreign firms as a cost-saving measure, and that the cost savings are only worthwhile to them during recessions. One assumption the argument makes is that the same options are available to them at all times--the same mix of foreign and domestic options for outsourcing, or perhaps the same availability and cost of hiring employees. While this isn't explicitly an "assumption" question, many "evalulate" questions hinge on assumptions.

The assumption that the same options are available at all times is captured by (D), which is correct. It might seem obvious that, in most real-world situations, foreign firms are available at all times, but once the question raises it as a point that might be in question, you must consider the possibility that it is an assumption left unstated by the argument.