Moving parts of production to another country to reduce costs is known as which practice?

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Multiple Choice

Moving parts of production to another country to reduce costs is known as which practice?

Explanation:
Moving production to another country to cut costs is offshoring. This term specifically describes relocating parts of the production process across international borders to take advantage of lower costs, resources, or regulatory conditions. Outsourcing, in contrast, refers to contracting work to an external provider and is defined more by the business relationship than by where the work is performed. A nearby country would be nearshoring, and insourcing means bringing activities back in-house. So the scenario described is best described as offshoring.

Moving production to another country to cut costs is offshoring. This term specifically describes relocating parts of the production process across international borders to take advantage of lower costs, resources, or regulatory conditions. Outsourcing, in contrast, refers to contracting work to an external provider and is defined more by the business relationship than by where the work is performed. A nearby country would be nearshoring, and insourcing means bringing activities back in-house. So the scenario described is best described as offshoring.

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