Outsourcing to suppliers in other countries.

• A. Outsourcing
• B. Offshoring
• C. Source Factory
• D. Lead Factory

Answer: (B)

Offshoring is about relocating production or services to another country, usually to cut costs or access new markets. When the description specifies outsourcing to suppliers in other countries, the key idea is that the activity is being moved across borders to foreign suppliers. That foreign-location element is what makes it offshoring. Outsourcing by itself means contracting work out to an external provider, but it doesn’t inherently indicate a foreign location. The terms “source factory” and “lead factory” describe particular roles within a global production network and don’t precisely capture the basic idea of moving work to a different country.