Global Sourcing Debate (Scenario)

question 81

Multiple Choice

Global Sourcing Debate (Scenario)
Prof. Sean Peterson's class of international business has been studying the controversies surrounding global sourcing. Prof. Peterson divided the class into two groups, A and B. Group A was assigned the task of defending global sourcing, whereas Group B was assigned the task of arguing against global sourcing.
-The concept of creative destruction can be reasonably used by Group A to support the view that ________.

• A) firms that engage in offshoring are more likely than not to fail in the long run
• B) offshoring forces unskilled workers to seek additional education
• C) global sourcing creates opportunities and stimulates innovation
• D) outsourcing technical jobs leads to brain drain

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Definitions:

Economic Activity

Economic activity refers to activities related to the production, distribution, exchange, and consumption of goods and services in an economy.

Economic Entities

Organizations or individuals engaged in economic activities, recognized as separate units for accounting and financial reporting.