offshoring - Definitions from Dictionary.com
the practice of moving business processes or services to another country, esp. overseas, to reduce costs
Student or Learner
Could anyone please explain the following in bold? I'm especially confused about the meaning of "offshoring" in the context.
One chapter absolutely essential for consumers and businesses operating in China deals in much greater detail with what has become an epidemic of contaminated and defective products from China. Consumers need to know how to protect themselves from this epidemic. Business executives likewise must learn how to ensure quality control when offshoring to the People's Republic---or risk costly recalls and debilitating lawsuits.
So to further comment:
If a company makes something in their own factory, they have complete control of the quality. I can go downstairs and look at the raw materials, test the products at various stages of production, and examine the finished products.
But when I close my factory and instead have someone "offshore" (in China or anywhere else) make my product, I don't have the same ability to see what is happening. I need to come up with another way to ensure the same level of high quality.
In China it's called the global factory. (Mind you, when I think of globalization, I think of McDonald's and KFC.)
Bob, didja move?