What Is the Difference Between "Off Shoring" and "Outsourcing

question 25

Multiple Choice

What is the difference between "off shoring" and "outsourcing"?

• A)Off shoring refers to manufacturing in others countries,while outsourcing refers to buying raw materials in other countries.
• B)Off shoring is an activity of MNCs,while outsourcing is an activity of purely domestic firms.
• C)Off shoring refers to obtaining foreign labor to work on domestic projects,while outsourcing refers to using contract domestic labor for domestic projects.
• D)There is no difference,they are interchangeable terms.

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Definitions:

Competitive Firms

Businesses that operate in markets with many sellers, where each seller has no control over the market price and must accept the market price for its products or services.

Positive Profits

A situation where a business or individual earns more money than expended, indicating financial success and sustainability.

Long Run

The long run is a period in economics sufficient for all markets to reach equilibrium, where all inputs can be considered variable, and companies can adjust all costs.

Pollution Free

An attribute of products, services, or practices that do not release harmful contaminants into the environment.