Producing goods internally.

• A. Outsourcing
• B. Insourcing
• C. Make-or-Buy Decision
• D. Offshoring

Answer: (B)

Insourcing is the practice of producing goods within the organization using its own facilities, equipment, and staff. This directly matches “producing goods internally” because the work stays under the company’s ownership and control, making it easier to manage quality, schedule, and intellectual property, and to leverage existing capabilities. Outsourcing, by contrast, means using an external supplier to make the product, which is the opposite of producing internally. The make-or-buy decision is about choosing whether to produce in-house or buy from outside; it describes the process, not the action itself. Offshoring refers to moving production to another country and concerns location; it can be in-house production abroad or contracted elsewhere, but the phrase “producing goods internally” most closely points to insourcing, the in-house production mindset.