Abstract :
Offshoring can be defined as relocation of business processes, including high-wage production and manufacturing jobs, to a lower cost location, usually overseas. To be able to adopt this principle, companies must be efficient enough to produce its goods close to the place where they are in demand, even when labour cost are high. They should also look carefully at their economics before they send production overseas. In this paper, this principle is illustrated taking the state of California as an example.
