Society For Human Resource Management (SHRM) Certified Professional Practice Exam

A business in the United States that engaged in near-shoring could move a process to:

1. Iceland

2. Canada

3. Portugal

4. China

The correct answer is: Canada

Near-shoring refers to the practice of relocating business processes or services to a nearby country, often to reduce costs while still benefiting from geographical and cultural proximity. When considering the geographic context of the United States, Canada stands out as a prime example of a near-shore destination. Canada shares a long border with the U.S., making logistics simpler and more efficient than if a business were to move operations to a more distant location. Additional advantages of near-shoring to Canada include similar time zones, cultural affinities, and regulatory environments, which facilitate smoother communication and collaboration compared to farther locations. In contrast, while Iceland, Portugal, and China are all valid locations for business operations, they do not fit the near-shoring criteria for U.S. companies. Iceland and Portugal are significantly farther away from the U.S., and China is not only distant but also involves different time zones and cultural practices that might make operations less efficient from a near-shoring perspective.