If a company decides to outsource to a company in another country that is close in proximity as well as culturally, economically, and politically similar, they are using this type of outsourcing.
(a) nearshoring
(b) insourcing
(c) outsourcing
(d) offshoring

The correct answer is (A) Nearshoring

Explanation:

Outsourcing is a common strategy used by companies and businesses, this involves transferring part of the functions or work to a different company or business by hiring it. In the case of nearshoring outsourcing, this occurs when the company that is hired locates in a country that is near to the one main company. Additionally, this proximity often means a similar time zone, culture, history, etc. which facilities all the process of outsourcing. Additionally, nearshoring is the opposite of offshoring in which outsourcing occurs in a country that is far. According to this, the type of outsourcing described is nearshoring because the company hired is close in proximity and shares multiple similarities.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: