Which term describes outsourcing to nearby countries?

• A. Nearshoring
• B. Co-sourcing
• C. Distribution Center
• D. Transportation

Answer: (A)

Nearshoring describes outsourcing to nearby countries. The idea is to relocate work to a neighboring country to gain cost benefits while keeping operations close enough to manage easily—shorter travel distances, similar time zones, and simpler coordination. This is different from offshoring to distant locations and from other terms in the choices: co-sourcing involves shared responsibility with external partners but isn’t defined by geographic proximity, while a distribution center and transportation refer to logistics activities rather than where production or services are sourced.