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Offshoring and Reshoring

The debate over offshoring and reshoring is part of a more general discussion about the causes and effects of changes in production location. Domestic outsourcing occurs when production shifts from one company to another but remains within the same country. The company to which production shifts can be either domestically owned or foreign owned. Captive offshoring occurs when production shifts to a company that is domestically owned or controlled but located in a foreign county. Offshoring, as the term is commonly used, occurs when domestic production shifts to a foreign-located and foreign-owned or -controlled company, and inshoring is just the opposite (i.e., foreign companies shift production to the domestic nation). Reshoring occurs when offshoring is reversed, causing production that was previously offshored to return to ...

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