Audio Component Outsourcing (Scenario)
Echo Corp., a company based in Boston, manufactures high-quality audio components, such as speakers, amplifiers, and receivers for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in global sourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that global sourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following is a potential benefit that Echo can derive from global sourcing?
A) cheap R&D
B) access to qualified personnel in the home country
C) strong intellectual property protection
D) improved productivity and service

Question

Quizplus · Accepted Answer

Global sourcing can lead to improved productivity and service by accessing cost-effective resources and potentially more efficient manufacturing techniques available in other countries.