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offshoring

Offshoring is the practice of locating some of a company’s manufacturing, services, or other processes in a country other than the country where the company is based. Offshoring is typically done to access lower-cost labor resources, labor resources with specific skills, and infrastructure, such as manufacturing plants.

In Washington State, there is no specific legislation that directly addresses the practice of offshoring. Companies in Washington are generally free to offshore parts of their operations to other countries as a means to reduce costs or access specific labor skills and infrastructure. However, businesses must still comply with federal laws and international trade agreements that govern offshoring activities. These include tax obligations under the Internal Revenue Code, compliance with the Foreign Corrupt Practices Act (FCPA), adherence to trade agreements such as the North American Free Trade Agreement (NAFTA), and its successor the United States-Mexico-Canada Agreement (USMCA), as well as any tariffs and export controls. Additionally, companies may be subject to public opinion and the impact that offshoring can have on their brand and consumer base, which can be a significant factor in a market like Washington State that is known for its progressive consumer base.

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Business

offshoring

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Business

offshoring

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