Chapter 7, Problem 5ALR

Summary Introduction

To discuss: The reason a firm might choose an option other than making at goods and services at home and the reason why outsourcing is on rise and the manner offshoring is different from outsourcing.

Shifting of high-cost jobs from one country to lower-cost location due to various reasons such as favorable economic conditions or low labor cost is known as offshoring.

The process of providing the goods and services from outside vendors that are produced at home is known as outsourcing.