When a U.S. company shifts some of its production to Mexico, it is engaging in

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Outsourcing refers to the practice of shifting production or services to a third-party vendor or a different location to reduce costs, increase efficiency or gain access to specialized skills. Shifting production to Mexico can be considered outsourcing since it involves partnering with a vendor or setting up a facility in a different location to take advantage of lower labor costs and other benefits.

When a US Company Shifts Some of Its Production to Mexico, It