nearshoring

The offshoring of a business process or manufacturing plant to a lower cost foreign location that is in close geographic proximity to the contracting company.
Examples of nearshoring include:
A German company outsourcing production or services to a company in Poland or the Czech Republic
A U.S. company outsourcing production or services to a company in Mexico
A Japanese company outsourcing production or services to a company in China
Benefits of nearshoring include:
Lower travel and communications costs
Closer control over the process
Lower transportation costs to a product’s eventual market
Tax and tariff advantages, especially if the nearshore country is within a trade agreement region where the eventual product will be sold. For example, a Canadian company nearshoring production to Mexico for products that will be sold in the U.S.

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