Which term is used to describe what a company is doing when it moves its production to another country, producing the same products in the same way but with cheaper labor, lower taxes, and lower benefits to workers?
a. Outsourcing
b. Offshoring
c. Capital flight
d. Contingent employment
Question 2
The term capital flight is defined as
a. the movement of corporate money from one investment to another through investment in plants located in other nations, plant relocation within the United States, and mergers.
b. when a company moves its production to another country, producing the same products in the same way, but with cheaper labor, lower taxes, and lower benefits to workers.
c. taking some specific task that a company was doing in-housesuch as research, call centers, accounting, or transcribingand transferring it to an overseas company to save money and then reintegrating that work back into the overall operation.
d. independent contractors working from their homes, paying for their own health care and retirement plan, and furnishing their own equipment.
Term neonate.
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