Management Information System (MIS) Practice Exam

What term is used for services provided by companies closer to their home country?

1. In-forming.

2. Nearshoring.

3. Onshoring.

4. Outsourcing.

The correct answer is: Nearshoring.

The term that refers to services provided by companies closer to their home country is nearshoring. This practice involves relocating business processes or services to a nearby country rather than outsourcing them to a distant location. Nearshoring typically allows companies to benefit from geographical proximity, which can result in fewer cultural and language barriers, easier communication, and reduced time zone differences. By choosing a location that is geographically closer, businesses can also maintain greater control over operations and logistics, enhancing coordination and responsiveness. Nearshoring often leads to cost savings while still maintaining a level of engagement with operations that would be more challenging if outsourced to far-off countries. Other terms mentioned represent different concepts. Onshoring involves bringing operations back to the home country completely. Outsourcing is the practice of delegating specific tasks or functions to external organizations, regardless of their location. In-forming is not widely recognized as a formal term in this context. The emphasis on proximity in nearshoring differentiates it as the most relevant answer for services provided closer to a company's home country.