Which term denotes moving production to another country to exploit cheaper labor?

Which term denotes moving production to another country to exploit cheaper labor?

• A. Offshore
• B. Outsource
• C. Growth Poles
• D. Fordist production

Answer: (A)

Offshoring is moving production to another country to take advantage of cheaper labor. The idea is to relocate manufacturing activities across borders to lower costs, often by setting up facilities abroad or contracting with foreign producers. Outsourcing, while related, means obtaining goods or services from another company and isn’t necessarily tied to changing where the production sits; it can be domestic or international. The other terms don’t fit: Growth Poles describe a development model that concentrates growth in key regions, and Fordist production refers to a mass-production regime with standardized assembly-line processes, not the international relocation of production.

Offshoring is moving production to another country to take advantage of cheaper labor. The idea is to relocate manufacturing activities across borders to lower costs, often by setting up facilities abroad or contracting with foreign producers. Outsourcing, while related, means obtaining goods or services from another company and isn’t necessarily tied to changing where the production sits; it can be domestic or international. The other terms don’t fit: Growth Poles describe a development model that concentrates growth in key regions, and Fordist production refers to a mass-production regime with standardized assembly-line processes, not the international relocation of production.