Outsourcing, offshoring & re-shoring as HR strategies (IBDP)

Which term best refers to the transferring out of internal activities to an external provider?

• Subcontracting

• Offshoring

• Franchising

• Re-shoring

Which term refers to relocating a business’ activities overseas?

• Subcontracting

• Offshoring

• Franchising

• Re-shoring

Which term refers to transferring overseas operations back to the domestic country?

• Subcontracting

• Offshoring

• Franchising

• Re-shoring

Apple designs its products in California, USA. It contracts significant manufacturing activities to Foxconn in Shenzhen, China. What is this an example of?

• Subcontracting/Outsourcing

• Insourcing

• Repatriation

• Re-shoring

Which of the following is not a disadvantage of outsourcing?

• Redundancies may be caused, so need to be handled carefully

• It distracts a firm from focusing on its core business activities

• Subcontractors may engage in unethical business practices

• Quality management is more challenging, especially if the outsourcing firm is located overseas