Which of the following best defines offshoring?

The definition of offshoring accurately focuses on the act of moving operations to another country while maintaining control over those operations. This means that a company relocates specific functions—such as manufacturing, customer service, or IT—across international borders to take advantage of factors such as lower labor costs, favorable economic conditions, or access to new markets. The key aspect of offshoring is that the business retains authority and oversight, which distinguishes it from outsourcing where the entire function might be delegated to third-party suppliers, possibly in different locations.

This option emphasizes the strategic nature of offshoring, highlighting that organizations often pursue it to optimize their operations while still managing and directing the activities performed abroad. Understanding this concept is crucial for grasping how companies can leverage global resources while maintaining operational control.