Answer to Question 1
Answer: Offshoring is the migration of all or a significant part of the development, maintenance, and delivery of services to a company located in another country. From a recruitment standpoint, the shift moves from a labor pool in the home country to labor pools in overseas countries where business is being transplanted. With rare exception, employees do not move with the jobs. Traditionally, the reason given for offshoring is to reduce costs. Today, increased quality service is also being given as reasons for offshoring. Another rationale is labor cost savings because wages and salaries in many other countries, particularly in Asia, have generally been lower than in the United States. Offshoring growth concentrates in information technology, software development, and innovation services (product design, research and development, and engineering services). However, offshoring activities increasingly are being reversed. Reshoring is the reverse of offshoring and involves bringing work back to the United States. Advocates of reshoring believe that manufacturers should calculate the total impact of offshoring because there are often hidden expenses such as higher costs for travel, packaging, shipping, and inventory. Also, rising wages in countries where wages were predominantly lower have contributed to reshoring activities.
Answer to Question 2
C
Identify the structures shown below by filling in the blanks.
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