"Offshoring" is technically different from "outsourcing" because:
A) the former is FDI that establishes a subsidiary in a foreign country.
B) the latter is FDI that establishes a subsidiary in a foreign country.
C) the former involves hiring firms to produce a product without investing in the foreign country.
D) the latter is sanctioned by the government.

Question

Quizplus · Accepted Answer

Offshoring refers to the relocation of business processes or production to another country, and usually involves the establishment of a subsidiary in a foreign country through foreign direct investment (FDI). Outsourcing, on the other hand, involves hiring external firms to produce goods or services, often without investment in the foreign country. Therefore, option A is the correct answer.

"Offshoring" Is Technically Different from "Outsourcing" Because