IB Business Management SL 5.4.2 Reorganizing Production Topic Practice

Offshoring occurs when an organization sets up some of its operations or services in a foreign country. This can involve various functions, including customer support, manufacturing, software development, and back-office task.

Some key features (some of which may be benefits or drawbacks) of offshoring may include:
- cost savings
- access to skilled labour / specialized skills
- access to raw materials
- time zone and language issues
- scalability.
- sets up some of its operations or services in a foreign country
- increased transport costs / longer delivery times
- creates jobs for people in other countries

Do not award:
- different cultures
- different laws and regulations
- products are manufactured by another business (outsourcing) - would need to say abroad to get a mark

Accept any other relevant feature.
N.B. no description or application is required.

Award [1] for each relevant feature stated up to a maximum of [2].
(b) Using Figure 1 and Figure 2: