As One of the Benefits of Outsourcing, What Are the Advantages

question 13

Multiple Choice

As one of the benefits of outsourcing, what are the advantages of focusing on the core values and activities?

• A) Companies can enhance their core competencies and are able to push out the value frontier and create more value for their customers.
• B) It allows for the improvement of product differentiation by outsourcing to specialists when they stand out on the excellence dimension of quality.
• C) It will reduce costs when the price that must be paid to a specialist company to perform a particular value-chain activity is less than what it would cost the company to perform that activity in-house.
• D) A specialist may be able to achieve a lower error rate in performing an activity precisely because it focuses solely on that activity and has developed a strong, distinctive competency in it.
• E) It lowers costs and gives companies the flexibility to switch to a more favorable location if labor costs change. This is the most efficient way to handle production.

Comprehend the legal mechanisms addressing air pollution and acid rain.

Recognize the role and standards set by the Environmental Protection Agency (EPA) for protecting human health and the environment.

Identify the acts and amendments focused on preventing and controlling water pollution.

Grasp the implications and procedures of environmental legislation related to waste management and disposal.

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Definitions:

Market Price

The current market value at which an asset or service is up for sale or purchase.

External Benefits

Positive effects experienced by those not directly involved in an economic transaction.

Efficient Equilibrium

A state in which resources are allocated in the most efficient manner, leaving no potential for reallocating resources to make someone better off without making someone else worse off.

Government

A system or group of people governing an organized community, often a state, and set policies, laws, and regulations.