Question

____ encompasses moving production from a domestic site to a foreign site or moving at least some of a company’s production facilities to other countries where production costs are lower.

a. outsourcing
b. exporting
c. offshoring
d. dumping
e. globalization

Explanation:

To solve this, we analyze each option:

• Option A (Outsourcing): Involves contracting out tasks, not moving production facilities. Eliminate.
• Option B (Exporting): Sending goods abroad, not relocating production. Eliminate.
• Option C (Offshoring): Defined as moving a company’s production facilities from domestic to foreign sites (or vice versa) to reduce costs. Matches the description.
• Option D (Dumping): Selling goods abroad at below - cost prices, unrelated to production relocation. Eliminate.
• Option E (Globalization): A broad process of global integration, not a specific production - relocation practice. Eliminate.

Answer:

C. Offshoring