Which of the following is TRUE with regard to strategies for minimizing the risks of global sourcing?
A) To ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources.
B) To maximize returns and minimize risks, management should outsource core business operations.
C) Because production quality in an emerging market rarely varies over time, managers at the focal firm are not obliged to closely monitor manufacturing processes.
D) Firms must refrain from maintaining their own sourcing operations abroad in order to trim costs and minimize risks stemming from frequent currency fluctuations.
Correct Answer:
Verified
Q82: When outsourcing, managers can minimize the risk
Q83: Global sourcing eliminates the possibility of new
Q84: Environmental challenges of global sourcing include currency
Q85: In a short essay, describe how cost
Q86: To maximize returns, management should outsource those
Q88: Global sourcing enables a firm to free
Q89: In a short essay, explain how global
Q90: Countries with weak legal environments can erode
Q91: Discuss the major risks associated with global
Q92: Transformational outsourcing suggests that just as the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents