What does 'overseas manufacturing' refer to?

Overseas manufacturing refers specifically to the production of goods in a country that is different from the location of the company's headquarters. This practice allows businesses to take advantage of various factors, such as lower labor costs, access to raw materials, or proximity to target markets. Companies often seek overseas manufacturing to enhance their competitiveness by reducing production costs or increasing efficiency.

In contrast, producing goods at the company headquarters refers to domestic manufacturing, while using local suppliers pertains to sourcing materials or components rather than manufacturing the final products abroad. Setting up manufacturing within the national market also relates to local production rather than overseas. Therefore, the definition provided aligns directly with the broader context of globalization and the strategic decisions companies make regarding production locations.