Discuss Outsourcing by Explaining Its Purpose, Costs and Benefits

question 88

Essay

Discuss outsourcing by explaining its purpose, costs and benefits.Give two examples of outsourcing.

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Definitions:

Passive Benchmark

A standard, typically an index, against which the performance of an investment portfolio can be gauged, emphasizing a passive investment strategy.

Foreign Exchange Risk

The potential for financial loss due to fluctuations in exchange rates affecting foreign-denominated investments or transactions.

Translation Exposure

The risk that a company's financial statements can be affected by changes in exchange rates when foreign operations are consolidated.

Hedging Risk

The process of making an investment or entering into a financial transaction in order to reduce the risk of adverse price movements in an asset.