When a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers is referred to as insourcing.

Question

Quizplus · Accepted Answer

This statement describes outsourcing - when a firm decides to purchase goods and services from external suppliers instead of producing them in-house. Insourcing refers to the opposite situation where a firm brings previously outsourced goods or services back in-house to be produced internally.

When a Firm Has Been Making Goods and Services In-House