General Motors transferring manufacturing of its Saturn automobiles from a GM plant in Detroit, Michigan to a GM plant in Monterrey, Mexico is engaging in _____.

Question

Quizplus · Accepted Answer

Offshoring refers to the practice of relocating a business process or operation to a different country. In this case, the manufacturing of Saturn automobiles is being moved from the GM plant in Detroit to a plant in Monterrey, Mexico, making it an example of offshoring. Option A, outsourcing is also a similar concept but it generally involves delegating work to a third-party service provider rather than relocating it to another country. Options C and D, importing and exporting, refer to the movement of goods across national borders, while option E, franchising, is a business model where an individual or company pays for the right to use another company's brand name and business model.

General Motors Transferring Manufacturing of Its Saturn Automobiles from a GM