Question

When large u.s. software companies open facilities in developing countries to take advantage of the highly skilled labor available there at lower pay rates, they are engaging in:?

Answer 1

These companies moving their businesses to developing countries to take advantage of good labor at a lower rate are engaging in offshoring. Offshoring means the relocation of a business to another country, it is typically an operational business like manufacturing or possibly supporting practices like accounting. In most recent examples it has been associated mostly with technical and administrative services.

Answer 2

The company would be engaging in Offshoring. Offshoring is the moving of a business process from one country to another; usually an operational process such as manufacturing, or supporting process such as accounting. It is mainly done by company businesses, however governments may also employ offshoring.