Which of the following statements is true of offshoring?
A)It is the same as outsourcing processes to other organizations.
B)A firm often offshores processes by directly investing in its own foreign facilities.
C)A firm that uses offshoring faces less risk of intellectual property theft.
D)It occurs when a firm gains control over its value chain by performing all processes internally.

Question

Quizplus · Accepted Answer

Offshoring involves a firm directly investing in its own foreign facilities or outsourcing processes to other organizations located in a different country. Therefore, option B is the correct statement.

Option A is incorrect as outsourcing can be done domestically and may not involve another country.

Option C is incorrect as offshoring can increase the risk of intellectual property theft due to working with new suppliers or partners in a foreign country.

Option D is incorrect as offshoring involves outsourcing certain processes to other countries instead of performing them internally within the firm.

Which of the Following Statements Is True of Offshoring