Tech Solutions, a major information technology firm in Washington, has turned over its logistical functions of warehousing and transportation to Frisk, a logistics company in Vietnam. This has been done to reduce costs as Vietnam has lower labor costs than Washington. According to this scenario, Tech Solutions is an example of a company that uses _____.

Tech Solutions, a major information technology firm in Washington, has turned over its logistical functions of warehousing and transportation to Frisk, a logistics company in Vietnam. This has been done to reduce costs as Vietnam has lower labor costs than Washington. According to this scenario, Tech Solutions is an example of a company that uses _____.



a. offshoring

b. nearshoring

c. backsourcing

d. insourcing



Answer: a.


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