An organization creates a subsidiary in another country to reduce HR administration costs. Which HR administration approach is this?

• A. Offshore ownership
• B. Nearshoring
• C. Insourcing
• D. Onshoring

Answer: (A)

The main idea is offshoring through ownership. By creating a subsidiary in another country to handle HR administration, the organization 그대로 relocates and owns the foreign operation to achieve cost savings, rather than outsourcing to an external provider. This distinguishes it from nearshoring (moving to a nearby country), insourcing (keeping work in-house, typically in the home country), or onshoring (bringing work back to the home country). The defining factor is ownership of the foreign entity to perform the function, which matches the described approach.