What Is Offshoring? - Definition, Advantages & Disadvantages


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Which of the following is NOT a characteristic of offshoring?

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1. Which of the following is NOT an advantage of offshoring?

2. Which disadvantage of offshoring is described by the following statement: Shipping from another country would require additional time?

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About This Quiz & Worksheet

Offshoring is a practice used by some businesses in order to reduce production costs and increase profit margins. The quiz and worksheet test what you know about the benefits and drawbacks of offshoring and how it differs from outsourcing.

Quiz & Worksheet Goals

You will be quizzed on:

  • The advantages of offshoring
  • Offshoring characteristics
  • A disadvantage that stems from the fact that shipping from another country requires extra time
  • The term for hiring someone to provide specialized services

Skills Practiced

  • Interpreting information - ensure that you can read information about the advantages of offshoring and interpret it correctly
  • Knowledge application - use your knowledge to name an offshoring disadvantage that is illustrated by a consumer boycott due to manufacturing practices
  • Information recall - access the knowledge you've obtained about a practice where a company hires an accountant to perform services that no one in the company can provide

Additional Learning

For more about this topic, view the lesson titled What Is Offshoring? - Definition, Advantages & Disadvantages. This lesson is focused on the following objectives:

  • Explain why a company needs to be aware of cultural practices
  • Tell how a company could effectively handle language barriers while offshoring
  • Compare and contrast offshoring and outsourcing