Final answer:
Outsourcing refers to the practice of hiring outside contractors, often in other countries, to access cheaper labor and supplies, streamlining economic activity via global division of labor.
Step-by-step explanation:
The practice of engaging in the international division of labor to obtain the cheapest sources of labor and supplies regardless of country is known as outsourcing. This process involves hiring outside contractors, sometimes abroad, to perform tasks that a company once carried out internally. By doing so, companies can take advantage of lower wages and reduced production costs in other countries, which contributes to a global division of labor and can lead to economic activity through the specialized tasks of workers. However, outsourcing can result in lower job availability in developed countries as multinational corporations seek the lowest-cost options by moving their factories to other nations.