What is nearshoring?

• A. Moving production away to distant geography
• B. Moving production closer geographically
• C. Outsourcing to the lowest-cost region
• D. Opening production in multiple continents

Answer: (B)

Nearshoring means moving production to a nearby country to shorten distance to the market or suppliers. By producing closer, a company can reduce shipping time and costs, simplify logistics, and improve communication because time zones and practices are more similar. This is why the description that talks about moving production closer geographically matches nearshoring.

Moving production to distant geography is the opposite idea—longer supply chains and more logistics risk. Outsourcing to the lowest-cost region emphasizes cost, which can involve faraway locations and isn't about proximity. Opening production in multiple continents describes broad global expansion, not specifically locating production near the home country.