Final answer:
Offshoring is the concept described in the question where some companies move their operations overseas to access cheaper labor markets and reduce labor costs.
Step-by-step explanation:
The concept described in the question is offshoring. Offshoring is the practice of moving some of a company's operations overseas to access cheaper labor markets. This helps companies reduce labor costs and stay competitive in a global marketplace.
Offshoring is different from outsourcing, which is when a company hires an outside contractor, sometimes abroad, to perform tasks it used to handle internally. Both offshoring and outsourcing are methods used by companies to cut costs and improve efficiency.
For example, many clothing corporations have shut down their U.S. factories and relocated to countries like China, where labor is cheaper. By doing so, these companies can save on labor costs and produce goods at a lower price.