Final answer:
Nearshoring or reshoring, refers to the strategic decision by companies to relocate their production facilities closer to their key consumer markets to save on transportation costs, reduce lead times, and enhance responsiveness to the market.
Step-by-step explanation:
The process you're referring to is often termed nearshoring or reshoring in the world of business. It is a strategic decision taken by companies to relocate certain production facilities closer to their consumer markets.
This helps significantly reduce transportation costs, lead times, and enhances the company's ability to quickly respond to changes in market demand.
For instance, a car manufacturer may decide to set up production facilities in regions where it has a high customer base, thereby reducing the costs and logistics challenges associated with transporting cars over long distances.
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