GPN 39 Offshoring & Reshoring

What is the main difference between offshoring and outsourcing?

• A) Offshoring involves a third party, outsourcing does not.

• B) Offshoring is done within the same country, outsourcing is international.

• C) Offshoring involves your own brand's services abroad, outsourcing involves a third party.

• D) Offshoring is cheaper than outsourcing.

What is one reason companies are reshoring according to the text?

• Lower labor costs abroad

• Better quality control

• Increased outsourcing

• Higher taxes in home country

Some companies reshore due to issues with ______ control, which makes consumers lose faith in the company's output.

• quality

• cost

• time

• labor

What is a potential downside of offshoring mentioned in the text?

• Increased local employment

• Loss of control over quality

• Higher profits

• Easier management

Which of the following is a benefit of offshoring for LIC/NIC host countries (especially those in DTM stage 3)?

• Decreased employment

• Better skilled workforce

• Lower tax rates

• Increased environmental standards

The offshoring of jobs in one industry can lead to the loss of jobs in another due to the negative ------- effect.

What trend has made reshoring a more attractive option recently?

• Decreased oil costs

• HIC workers accepting lower wages

• Increased global shipping costs

• Lower home country taxes

Which company moved its headquarters to Singapore in 2017?

• Dyson

• Apple

• Samsung

• Sony

Which model (4 letter acronym) does reshoring appear to run counter to?

What is the estimated share of U.S. manufacturing jobs reshored from China between 2010 and 2021?

• 44%

• 30%

• 20%

• 10%