Offshoring

A designated area within a country where businesses can import and export goods with reduced or eliminated customs duties and regulations. This can be attractive for offshoring companies seeking lower production costs.

The practice of exploiting differences in labor costs between countries. Companies may offshore activities to countries with lower wages to maximize profits.

When evaluating offshoring, companies consider not just initial labor costs, but additionally factors like transportation, communication, intellectual property protection, and potential quality risks.

A special Free Trade Zone area allowing duty-free import of goods for later export or domestic sale

Offshoring to a nearby country, reducing transportation costs and improving communication

A company that offshores production to a country with lower labor costs, often harming home country workers

Relocating business functions to a foreign country, typically to reduce costs.

Contracting a third-party company, domestic or foreign, to handle business processes.

A company-owned facility abroad established to handle specific tasks, allowing more control than outsourcing.

Outsourcing back-office functions like HR, accounting, or customer service.