Advanced Placement (AP) Human Geography Practice Exam

What term refers to the combining of services or products sourced from distant countries while remaining in the home country?

1. Offshoring

2. Local Sourcing

3. Outsourcing

4. Globalization

The correct answer is: Outsourcing

The term that best describes the combining of services or products sourced from distant countries while remaining in the home country is outsourcing. This process involves a company contracting out certain functions or processes to external providers, which can include services, manufacturing, or even software development located in foreign countries. The key aspect of outsourcing is that these services or products are procured from elsewhere, but the overall business management, decision-making, and sometimes even the delivery to the final consumer remain within the home country. Offshoring, while related, specifically refers to relocating production or services to another country to take advantage of cost efficiencies, but it doesn't necessarily address the retention of the company's operational framework within the original country. Local sourcing focuses on procuring products or services from local or domestic suppliers, which is contrary to the premise of utilizing distant sources. Globalization broadly encompasses the process of increasing interconnectivity and interdependence among countries, including economic, cultural, and political aspects; however, it does not specifically refer to the practice of obtaining services or products from abroad while remaining in one's home market.