Final answer:
Outsourcing is when a company contracts an outside firm, potentially abroad, to perform tasks internally done before, while retaining control over the process.
Step-by-step explanation:
Outsourcing is a practice where companies contract outside sources, often in another country, to perform tasks that could be done internally. This concept has become increasingly common in the era of globalization, where trade agreements like NAFTA and advancements in technology have made it feasible to shift jobs to locations with cheaper labor markets. While outsourcing is about contracting out work to an external firm which could be abroad, offshoring refers to a company moving its own operations overseas while retaining control over those processes to benefit from lower labor costs.
Outsourcing is the practice of hiring outside contractors, sometimes abroad, to perform tasks that a company used to perform internally. It involves contracting with another company to do specific jobs that would otherwise be done by the company's own workers. Outsourcing can involve moving a business process to a foreign country but retaining control of it, which is option 1 in this case.The correct answer to the student’s question is option 1: Outsourcing is the practice of moving a business process to a foreign country but retaining control of it.