What is reshoring?

Reshoring refers to the process of bringing business operations and manufacturing back to the home country from overseas. This strategy is typically motivated by various factors, including the desire to reduce costs related to international shipping, improve supply chain transparency, and regain control over production quality and intellectual property.

When companies reshore, they often aim to take advantage of local labor, stimulate domestic economic growth, and respond to consumer preferences for domestically produced goods. This process can also help businesses navigate challenges like tariffs and trade tensions that may arise in international markets.

While the other options describe different strategies or approaches in the context of global business, they do not align with the concept of reshoring. For instance, moving activities to a foreign country permanently would describe offshoring, while outsourcing to a nearby location refers to nearshoring. Employing robotic processes abroad suggests automation employed in a foreign context, which does not relate to relocating operations back to the home country. Thus, bringing activities back to the home country accurately captures the essence of reshoring.