Question

a firm’s decision to shift the production of goods or services to an overseas company is called ______.
a. diversifying
b. forming a partnership
c. offshoring
d. telecommuting

Explanation:

To solve this, we analyze each option:

• Option A: Diversifying involves expanding into new products/markets, not shifting production overseas.
• Option B: Forming a partnership is a collaboration, not production shift overseas.
• Option C: Offshoring is defined as a firm shifting production of goods/services to an overseas company, which matches the question.
• Option D: Telecommuting is about remote work, not production shift.

Answer:

C. offshoring