Final answer:
When companies contact other companies, sometimes in another country, to do some or all of their functions, it is called outsourcing or offshoring.
Step-by-step explanation:
When a company contacts with other companies, sometimes in another country, to do some or all of its functions, it is called outsourcing or offshoring.
Outsourcing is the process of hiring outside contractors, sometimes abroad, to perform tasks that the company used to perform internally, such as accounting, payroll, human resources, and data processing services. Offshoring, on the other hand, is the process of moving some of a company's operations overseas to access cheaper labor markets.
Both outsourcing and offshoring became popular cost-saving options for large companies with the rise of globalization and trade agreements like NAFTA, allowing them to build plants or hire contractors in other countries.