Question

____ involves contracting with another company, in a low-cost country abroad, to have it perform a work activity the organization previously performed itself.

a) Offshoring
b) Outsourcing
c) Insourcing
d) Nearshoring

Answer 1

The practice described is known as offshoring, which is the relocation of a business process from one country to a lower-cost country abroad.

Step-by-step explanation:

The practice involves contracting with another company, in a low-cost country abroad, to perform a work activity the organization previously performed itself is known as offshoring. This is distinct from outsourcing, which is when a company hires an outside firm, sometimes abroad, to perform tasks it used to perform internally. While offshoring implies that the company continues to control the operations but relocates them to capitalize on cheaper labor costs abroad, outsourcing refers to hiring third-party vendors to perform certain duties that once were carried out within the original company.