Offshoring
Relocating business functions or production to another country to take advantage of lower costs, favourable regulations,...
Real World
Nike offshores most of its manufacturing to Vietnam and Indonesia, where labour costs are significantly lower than in the US, keeping production costs down.
Exam Focus
In evaluation questions, weigh cost benefits against reputational risk — examiners reward balanced judgement on offshoring decisions.
How well did you know this?