What is outsourcing?

Question

Quizplus · Accepted Answer

Outsourcing refers to the process of moving production or services to affiliate firms located outside of the country. It is a business practice that involves contracting out certain tasks or operations to third-party companies or individuals. This allows companies to take advantage of lower labor costs and access a wider range of skills and expertise, ultimately resulting in cost savings and increased efficiency. Vertical integration (A) involves acquiring or controlling all aspects of the production process, from raw materials to distribution channels. Selling products overseas to bypass import tariffs (B) is known as export-oriented production.

What Is Outsourcing