Final answer:
Outsourcing is the practice of contracting out jobs to an outside company, sometimes in another country, that were previously done internally by a company. Offshoring is when the company moves its own operations overseas to take advantage of cheaper labor. Both practices contribute to job market polarization and structural unemployment.
Step-by-step explanation:
The practice of using an outside supplier to do jobs that used to be done by a company's own workers is called outsourcing. This practice involves contracting jobs to an outside source, which can often be in another country. Outsourcing can range from manufacturing jobs to services such as customer support and IT. Additionally, when a company moves its operations overseas to access cheaper labor markets, this is referred to as offshoring. These strategies have a significant impact on employment, leading to a polarization of the job market and affecting structural unemployment. For example, as companies outsource and offshore, there may be fewer mid-level jobs available, and the gap between low-end and high-end positions widens.