5.4 Location

• Comparison shopping (clustering) means that firms locate near other businesses that cater for complementary or similar markets.
• Outsourcing/subcontracting is transferring business functions to an external firm within the same country.
• Offshoring is a type of outsourcing where business functions are transferred to an external firm located overseas.
• Insourcing is the use of a firm's own people and resources to accomplish certain business functions that otherwise might have been offshored.
• Reshoring is when offshored business operations are insourced.