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 is a strategy in which a firm sources goods or services from independent suppliers located abroad through contractual agreements. It is a high-control strategy where the focal firm manages and coordinates its global supplier network to provide a reliable and cost-effective supply of inputs. Global sourcing has grown significantly in the current phase of globalization due to advancements in communication technology, transportation, and logistics, and a significant reduction in trade barriers. Option A is false as global sourcing has increased significantly in recent years. Option C refers to offshoring, not global sourcing. Option D is not true as global sourcing is often the initial involvement of a firm in international business.

Which of the Following Is True with Regard to Global