Which of the options below is an example of 'outsourcing'?
A) MNCs buying cheap raw materials from abroad
B) The migration of labour from poor to rich countries
C) Locating skilled managers abroad by the HQ of an MNC to supervise local operations
D) The location of production abroad by a company to take advantage of lower labour and other resource costs

Question

Quizplus · Accepted Answer

Outsourcing involves a company hiring another company or individuals outside its own structure to perform services or create goods that traditionally were performed in-house by the company's own employees and staff. Option D, which describes a company locating production abroad to take advantage of lower costs, fits the definition of outsourcing, as it involves shifting production processes outside of the company's primary facilities to external locations for cost benefits.

Which of the Options Below Is an Example of 'Outsourcing