Setting up subsidiaries abroad when the work is done in-house only at the foreign location is also called:
A) Captive sourcing
B) Inshoring
C) Offshoring
D) Outsourcing

Question

Quizplus · Accepted Answer

Captive sourcing refers to setting up a subsidiary abroad that is wholly owned and controlled by the parent company, and where the work is completed in-house at the foreign location. This allows the parent company to have more control over the operations and quality of the work being done, while also taking advantage of lower labor costs or other benefits in the foreign country. Inshoring and offshoring typically refer to outsourcing work to a third-party provider, whereas captive sourcing is an internal strategy for expanding operations globally. Captive sourcing refers to setting up subsidiaries abroad, where the work is done in-house only at the foreign location, which means that the company owns and controls its offshore operation rather than outsourcing the work to a third-party vendor.

Setting Up Subsidiaries Abroad When the Work Is Done In-House