Question

Compared to outsourcing, nearshoring offers certain advantages such as similar time zones, cultural and linguistic affinity, geographical proximity, as well as economic, political, or historical linkages.

1. True2. False

Answer 1

The statement is true as nearshoring provides advantages like similar time zones and cultural similarity, offering benefits over traditional outsourcing.

Step-by-step explanation:

The statement that compared to outsourcing, nearshoring offers certain advantages such as similar time zones, cultural and linguistic affinity, geographical proximity, as well as economic, political, or historical linkages is true. Nearshoring is particularly beneficial for companies looking for closer collaboration with teams in similar time zones, which facilitates better communication and coordination. Additionally, nearshoring to countries with similar cultural and linguistic backgrounds can lead to fewer misunderstandings and a smoother integration of services.

Outsourcing can refer to contracting services to any outside firm, which may be located in another country. This process often seeks cost reductions by utilizing lower labor costs in other regions. However, nearshoring is a subset of outsourcing focusing on transferring jobs to nearby countries, typically sharing a border or being within the same region, which provides the aforementioned advantages.

Answer 2

Compared to outsourcing, nearshoring offers certain advantages such as similar time zones, cultural and linguistic affinity, geographical proximity, as well as economic, political, or historical linkages is a TRUE statement.

Explanation:

• It is evident from the successes of businesses that prefer nearshoring over outsourcing that nearshoring bears certain advantages that outsourcing does not.
• The action of outsourcing is preferred because the operations associated with business then become cheaper. But by choosing to outsource the operations, businesses ignore the advantages of nearshoring.