Which of the following is TRUE with regard to global sourcing?
A) Global sourcing has declined significantly in the current phase of globalization.
B) Global sourcing is a low-control strategy in which the focal firm sources from independent suppliers through contractual agreements.
C) Global sourcing refers to the relocation of a business process or entire manufacturing facility to a foreign country.
D) Global sourcing does not represent the firm's initial involvement in international business.

Question

Quizplus · Accepted Answer

Global sourcing typically involves the focal firm sourcing goods and services from suppliers around the world, often through contractual agreements rather than direct ownership or high-control mechanisms. This approach allows firms to leverage global efficiencies, such as lower labor costs or specialized expertise, without the need for direct investment in foreign operations.

Which of the Following Is TRUE with Regard to Global