Question

A Taiwanese manufacturer of electronic components for major global brands has production locations in several countries, including Vietnam, Turkey, Mexico, and the United States. What offshoring trend does this exemplify?

Multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies
Shift in offshoring from low-tech products such as textiles to high-tech products such as electronics
Demise of offshoring by firms based in developed countries
First use of offshoring by multinational companies

Answer 1

The trend exemplified by the Taiwanese manufacturer having production locations in multiple countries is the multidirectional shift in offshoring jobs to leverage more affordable labor markets in both emerging and developed economies. This approach allows the company to produce high-tech products like electronics more cost-effectively.

Step-by-step explanation:

The Taiwanese manufacturer's production locations in several countries, including Vietnam, Turkey, Mexico, and the United States, exemplifies the multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies. By leveraging globalization and trade agreements such as NAFTA, companies seek cost-effective strategies to maintain competitiveness. This is evident when companies move from producing low-tech products, like textiles, to high-tech ones, like electronics, in various countries with more affordable labor markets. A prominent example is the global assembly line, where companies may design products in one country and manufacture components or provide services in others to optimize production costs and efficiency.