Which term best describes the practice of hiring workers in other countries to perform specific jobs for a business?

• A. Vertical integration
• B. Offshoring
• C. Outsourcing
• D. Insourcing

Answer: (C)

Verified step by step guidance

1. Understand the definitions of each term: Vertical integration refers to a company controlling multiple stages of production within its supply chain; Offshoring means relocating business processes or production to another country, often to reduce costs; Outsourcing is the practice of hiring external firms or workers to perform specific tasks or services; Insourcing involves using a company's own resources or employees to perform tasks internally.
2. Identify the key aspect of the question: it asks about hiring workers in other countries to perform specific jobs, which involves contracting external parties rather than using internal resources.
3. Compare the options: Vertical integration and insourcing involve internal control and resources, so they do not fit the description of hiring external workers abroad.
4. Offshoring involves moving operations to another country, but it does not necessarily imply hiring external firms; it can be done internally by the company’s own foreign subsidiaries.
5. Outsourcing specifically means contracting out jobs to external workers or firms, which matches the description of hiring workers in other countries to perform specific jobs for a business.