What term describes the practice of relocating business processes to another country to take advantage of lower labor costs?

The term that describes the practice of relocating business processes to another country to take advantage of lower labor costs is off-shoring. This concept involves a company moving certain functions or services—such as manufacturing, customer service, or IT support—to a foreign location where labor and operational costs are lower than in the company's home country. Off-shoring is a strategic decision that organizations make to reduce costs, increase efficiency, and focus on core business activities while leveraging the benefits of globalization.

In contrast to off-shoring, outsourcing typically refers to hiring third-party companies to handle specific business processes, regardless of whether these services are provided domestically or abroad. Nearshoring involves relocating processes to countries that are geographically closer, often to mitigate time-zone issues and enhance communication. On-shoring refers to bringing processes back to the company's home country, which contradicts the fundamental aspect of off-shoring aimed at cost savings through relocation to lower-cost regions.