Offshoring Flashcards
1
Q
What is offshoring?
A
The relocation of business activities from the home country to a different international location
2
Q
What is the difference between offshoring and outsourcing?
A
In offshoring the work is done overseas but in outsourcing someone else does the work
3
Q
Why do businesses use offshoring?
A
- Manufacturing costs lower
- Potentially better skilled and higher quality
- To be closer to customers and demand
- To overcome protectionism
4
Q
What are the disadvantages of offshoring?
A
- Longer lead times for supply
- Implications for supply chain management
- Additional management costs
- More exposed to changes in exchange rates
- Language barriers and time zone
