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Outsourcing, Onshoring/Offshoring and Nearshoring/Farshoring Defined, Explained & Compared in 1 Min

A lot of people mistakenly believe that outsourcing has to involve delegating tasks to a foreign company but... well, as explained in this video, that is just not the case. You can indeed outsource to a foreign company but the same way, you can also outsource to a domestic one. To be more specific, you can use some of the other terms we have defined, explained and compated: onshoring for delegating to a local company, offshoring for delegating to a foreign company, nearshoring for delegating to a company from a nearby country or farshoring when delegating to a company from a country that is far away. As complicated as these terms may seem, they're actually easy to understand if they are defined, explained and/or compared in a logical manner. This video does just that. We will start by explaining the broadest term (outourcing), move on to explaining two more specific options (onshoring and offshoring) so as to end with the most specific ones, nearshoring and farshoring. After understanding the differences outlined in this video, you will raise an eyebrow from now one whenever you come across someone who misuses one of the terms. Even more so, you will be able to accurately explain why "offshoring" should be used instead of "outsourcing" in some cases or "nearshoring" instead of "farshoring" and so on. To become better at all things economics-related, mastering the basics in terms of definitions/explanations is a must and the four terms this video compares represent a textbook example to that effect.