Offshoring occurs, when a company moves all or some of its activities to another country. When the costs of running a company are cheaper in another country, the company may choose to move their activities or offices abroad in order to reduce expenses. As opposite to outsourcing, offshoring requires that the third party being hired to complete a job, will be located in another country. Companies that practice offshoring use International Manufacturing Contracts to produce in low cost countries of Asia and Latin America. See nearshoring; outsourcing.