Final answer:
Nearshoring is the practice of contracting a part of business processes or production to an external company in a nearby country. It offers benefits such as reduced costs, cultural similarities, and time zone compatibility.
Step-by-step explanation:
Nearshoring is the practice of contracting a part of business processes or production to an external company in a country that is relatively close, such as within the same own region. It is a form of outsourcing where a company transfers its operations to a nearby country to take advantage of benefits such as reduced costs, cultural similarities, and time zone compatibility. For example, a company based in the United States may nearshore its customer service operations by contracting with a company in Mexico.