Fun Play Global Sourcing (Scenario)
Fun Play Inc., a company manufacturing toys for children, has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist its managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the outsourced activities should be located.
-If Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in ________.
A) offshoring
B) contract manufacturing
C) cause marketing
D) captive sourcing

Question

Quizplus · Accepted Answer

Captive sourcing refers to a company outsourcing to its own wholly owned subsidiary, often in a different country, to take advantage of lower costs while maintaining control over its operations.