Final answer:
Khalid is offshoring by buying components from a Canadian company for his U.S. firm's products, accessing cheaper labor markets.
Step-by-step explanation:
When Khalid, a buyer for a U.S. firm, shops globally and finds the best price at a Canadian company for components used in his firm's products, he will be participating in offshoring. Offshoring is the process of moving some of a company's operations overseas to access cheaper labor markets, which is exactly what Khalid is doing by sourcing components from Canada as opposed to buying them within the United States. It's also important to distinguish offshoring from outsourcing, which occurs when a firm hires an outside contractor to perform tasks that were previously done internally, potentially also abroad.