The Purchasing Strategy in Which Two Suppliers Are the Sole

question 15

Multiple Choice

The purchasing strategy in which two suppliers are the sole suppliers of different parts,but are also the backup suppliers for each other's parts is

• A) sole sourcing.
• B) multiple sourcing.
• C) just-in-time sourcing.
• D) backup sourcing.
• E) parallel sourcing.

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Definitions:

Foreign Company

A business entity that is based in one country but operates and has a presence in other countries outside of its home country.

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.

Internationalization Process

The process through which a company expands its operations beyond its national borders into the international market.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or any other business activity, sharing the risks and rewards.