Practice 22 Flashcards
1
Q
Offshoring
A
manufacturing outside its home market anywhere in the world based on cost-efficiency (ex. Apple’s manufacturing facilities in Ireland and Singapore)
2
Q
Nearshoring
A
manufacturing outside its home market but regionally close / more favorable market access (ex. GM/Auto factories in Mexico servicing US market)
3
Q
Reshoring / onshoring
A
manufacturing moving back to home country as a result of improved operational efficiency or legal / regulatory / trade constraints
4
Q
why global sourcing
A
- Reduce costs / increase competitiveness (cheap labour, laxer work rules, lower land and facility costs)
- Improve quality of products / services
- Gain access to exclusive raw materials (only available in other markets)
- Increase exposure to worldwide technology
- Improve delivery-of-supplies process
- Establish presence in foreign market
- Diversify supplier base (supplement domestic suppliers)
5
Q
A