Turning over an organizational activity to an international firm or foreign firm is called _____.
A) captive sourcing
B) onshoring
C) offshoring
D) commoditizing

Question

Turning over an organizational activity to an international firm or foreign firm is called _____.
A) captive sourcing 
B) onshoring 
C) offshoring 
D) commoditizing

Quizplus · Accepted Answer

Offshoring is the practice of moving an organizational activity or business function from one country to another, usually to reduce costs. This process involves relocating jobs or operations to a foreign country or international firm. Choices A, B, and D do not accurately describe this process. Captive sourcing refers to establishing an offshore subsidiary to provide additional services or support to the parent company. Onshoring refers to bringing back an activity or function from a foreign country to the home country. Commoditizing refers to transforming a product or service into a commodity that is easily replaceable by another product or service of lower cost.

Turning Over an Organizational Activity to an International Firm or Foreign