Which of the Following Best Describes Offshoring

question 26

Multiple Choice

Which of the following best describes offshoring?

• A) It is the practice of having another company provide services.
• B) It refers to moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.
• C) It is a method of staffing other than the traditional hiring of full-time employees.
• D) It is a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality of products and services.
• E) It refers to acquiring a new company in a distant location or another country in order to acquire higher market share or growth.

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Definitions:

Average Total Costs

The average cost per unit is calculated by dividing the entire production cost by the quantity of units produced.

Total Fixed Costs

The sum of all costs that remain constant in total amount regardless of changes in the level of production or output.

Total Cost

The combined financial outlay for producing goods or services, covering both unchanging and varying expenses.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.