What does offshoring refer to?

Offshoring specifically refers to the practice of relocating operations or certain business functions to another country, typically to take advantage of lower labor costs, favorable regulations, or other economic benefits. This strategy allows companies to operate more efficiently and effectively on a global scale. By moving operations abroad, businesses can focus on optimizing their processes and reducing costs while accessing new markets and resources.

The other options might refer to different concepts within operations management. For instance, transferring operations back to a domestic location is known as reshoring, which is not applicable in this context. Reducing the local workforce may relate to cost-cutting measures but does not encompass the geographical aspect of offshoring. Hiring international remote workers is more about employing individuals from different countries while maintaining the business's operations in its original location, which again does not align with the definition of offshoring.