ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -"Offshoring” is a company’s relocation of a business process from one country to another. This typically involves an operational process, such as manufacturing, or a supporting process, such as accounting. Even state governments employ offshoring.

Detailed explanation-2: -First seen as a formal business strategy in 1989, outsourcing is the process of hiring third parties to conduct services that were typically performed by the company. Often, outsourcing is used so that a company can focus on its core operations. It is also used to cut costs on labor, among others.

Detailed explanation-3: -What does offshoring manufacturing mean? Offshoring manufacturing is when businesses relocate their manufacturing or production operations to another country. It allows businesses to capitalize on benefits like reduced costs and skilled workers.

Detailed explanation-4: -Outsourcing is a business practice in which a company hires a third party to perform tasks, handle operations or provide services for the company.