One of the most commonly misunderstood aspects of the global supply chain is the difference between offshoring and outsourcing. A surprisingly large proportion of the general public confuse these terms, but they are distinct concepts.

Unlike outsourcing, offshoring is primarily a geographical activity. In the West, things are expensive because the staff needed to produce and distribute them is expensive. In the developing world, many low-cost jobs provide a fast platform for a low-cost economy.