A company headquartered in Milan, has completely transferred its printing services to a company in Germany because the labor and supplies are less expensive there. This is an example of
A) licensing.
B) franchising.
C) offshoring.
D) insourcing.
E) outsourcing.

Question

Quizplus · Accepted Answer

The given process is known as outsourcing. Outsourcing is the transfer of manufacturing or other tasks (such as information technology operations) to companies in countries where labor and supplies are less expensive. Many U.S. firms have outsourced tasks to India, Ireland, Mexico, and the Philippines, where there are many well-educated workers and significantly lower labor costs. Services, such as taxes or customer service, can also be outsourced.

A Company Headquartered in Milan, Has Completely Transferred Its Printing