Asked by Carly Koncz on May 28, 2024
Verified
Techni Asset, a software corporation based in Canada, used to operate from several countries with lower labour costs. When the firm started to incur high costs of production in the foreign countries and received complaints and criticisms about the loss of local jobs, the firm decided to return to its home country. This change made to the firm's global strategy is an example of ___.
A) offshoring
B) outsourcing
C) nationalization
D) privatization
E) reshoring
Global Strategy
A comprehensive plan developed by businesses to operate and compete on an international scale.
Reshoring
The practice of bringing manufacturing and services back to a country from overseas, driven by factors such as cost, quality, and supply chain reliability.
High Costs
Expenses that are significantly above average, often impacting profitability or affordability.
- Comprehend the principles and ramifications of offshoring and reshoring within the global commerce context.
Verified Answer
MR
Melissa RamosJun 03, 2024
Final Answer :
E
Explanation :
Reshoring is the act of bringing back offshore activities or production to the home country. In this case, Techni Asset made a strategic decision to return to Canada due to high production costs and criticisms about the loss of local jobs. Therefore, it is an example of reshoring.
Learning Objectives
- Comprehend the principles and ramifications of offshoring and reshoring within the global commerce context.