5.4 Location Flashcards
1
Q
Reasons for a specific location of production
A
- Cost (availability of land and labor)
- Proximity to market
- Governmental incentives
- Clustering (firms locate near other firms in related industries)
2
Q
Outsourcing
A
the process of transferring internal (non-core) business activities to an external firm to reduce costs and improve productivity
3
Q
Offshoring
A
an extension of outsourcing that involves relocating part/ all of a firm’s functions overseas
4
Q
Insourcing
A
the use of firm’s own workforce and resources to accomplish a certain function or task that would have been outsourced
