Which strategy involves moving production closer to the company's home region to reduce distance to market?

• A. Nearshoring
• B. Reshoring
• C. Offshoring
• D. Insourcing

Answer: (A)

Nearshoring is about shifting production to a nearby country or region to shorten the distance to the market. By moving manufacturing closer to home, a company can cut transportation time and costs, reduce lead times, and respond more quickly to changes in demand. This approach sits between offshoring (moving production to distant locations) and reshoring (bringing production back to the home country, which may or may not be nearby). Insourcing isn’t about locating production in a different country at all; it’s about doing work in-house rather than outsourcing. For example, a U.S. company moving production from Asia to Mexico makes the supply chain more regional, improving speed and coordination with North American customers.