Certified Supply Chain Professional (CSCP) Practice Exam

What obstacle can arise from offshoring?

1. Reduction in production time

2. Language and culture differences

3. Increased proximity to customers

4. Improved technology access

The correct answer is: Language and culture differences

Offshoring can often introduce language and culture differences, which serve as significant obstacles in the effectiveness of operations. When businesses shift their production or services to another country, they encounter variations in language, cultural perceptions, business practices, and communication styles. These differences can lead to misunderstandings, misinterpretations, and a lack of synergy between teams that impede collaboration and efficiency. For instance, a company may find that communication issues arise, causing delays in project timelines or errors in product specifications that are rooted in differing terminologies or expectations tied to cultural norms. In contrast, the other options describe potential benefits or neutral factors associated with offshoring. The reduction in production time may occur as a result of improved operational efficiencies, and increased proximity to customers generally implies a logistical advantage rather than a drawback. Improved technology access can be realized through globalization, making advanced tools and systems more available. However, language and culture differences remain a hurdle that companies must strategically manage to avoid negative impacts on their global operations.