Question

Match each of the global business practices with an example of its use.

Answer 1

a . Offshoring : A U.S. car company begins making some of its car parts in Bangladesh

Offshoring occurs when a company takes some of its processes to services to another country or countries in order to take advantage of the lower cost conditions prevailing there.

b. Outsourcing: A U.S. car company hires a South Korean company to make its tires.

Outsourcing refers to the practice of procuring products or services from an overseas or foreign supplier instead of obtaining them from a domestic supplier.

c. Insourcing: A Japanese car company opens a factory in the United States

Insourcing refers to the practice of using its own personnel and resources to accomplish its task.