Derrick decides to shut down his steel business in Kenya and shift the production to his home country, the United States. The rising labor problems and political disruptions in the host country had led him to make this decision. This method of shifting of business to a native location is called _____.

Question

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The method of shifting a business to a native location is known as reshoring. This decision is usually taken when there are issues related to labor, politics, or other environmental factors in the host country that makes it difficult for the company to operate. The other options, such as joint venture, foreign subsidiary, outsourcing, and franchising, do not describe the situation where a company moves its operations to its home country.

Derrick Decides to Shut Down His Steel Business in Kenya