Contracting with a third party or an external company to manufacture a good or deliver a service is known as ______.
A)offshoring
B)outsourcing
C)domestic production
D)internalization

Question

Quizplus · Accepted Answer

Outsourcing involves contracting with an external company or third party to manufacture a good or deliver a service. Offshoring specifically refers to outsourcing to a foreign country, while domestic production involves manufacturing goods in-house within the same country. Internalization involves expanding a business by acquiring or creating new operations internally rather than outsourcing.

Contracting with a Third Party or an External Company to Manufacture