Audio Component Outsourcing (Scenario)

question 23

Multiple Choice

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 major challenge often faced by focal firms that engage in global sourcing?

• A) no control over the quality of outputs
• B) domestic management of local distribution
• C) increased costs of business travel
• D) lower-than-expected cost savings

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Definitions:

Immune Response

The body's defense mechanism against foreign substances or pathogens, involving various cells and proteins.

IgE Antibodies

Antibodies produced by the immune system that play a key role in allergic reactions.

Allergy

An immune system reaction to foreign substances (allergens) that are usually harmless to most people, leading to various symptoms.

Phagocytosis

A cellular process where cells engulf and digest particles or other cells, a crucial part of the immune response.