What Is Outsourcing? What Is the Reason Companies Outsource? What

question 34

Essay

What is outsourcing? What is the reason companies outsource? What is offshoring? What is the reason companies offshore? List two downsides to offshoring.

---

Definitions:

Market Inefficiency

A condition where all available information is not fully incorporated into asset prices, leading to opportunities for higher returns.

Siamese Twin Companies

Companies listed in different countries that share an operational business but trade separately on the stock exchange.

Equity Carve-Outs

A type of corporate restructuring where a company creates a new, independent company by selling or distributing new shares of its existing division or subsidiary.

Closed-End Funds

A type of investment fund with a fixed number of shares that are traded on a stock exchange.