Offshoring
Relocating business functions or production to another country to take advantage of lower costs, favourable regulations,...
Real World
Nike offshores almost all its footwear manufacturing to factories in Vietnam and Indonesia, where labour costs are a fraction of US rates, allowing it to maintain high margins while keeping retail prices competitive.
Exam Focus
In 'assess' questions on offshoring, include reputational risk and quality control as evaluation points alongside the cost benefit.
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