Of the Following,which Is NOT an Advantage of Global Procurement

question 39

Multiple Choice

Of the following,which is NOT an advantage of global procurement?

• A) The firm does not need to invest the money that is associated with making.
• B) The firm can focus upon the production stages and components with the most value added.
• C) The firm can maximize its flexibility by allocating its orders among the suppliers in a dynamic way.
• D) If global suppliers are selling to many companies in the same industry but in different countries,these suppliers can achieve economies of scale and lower costs.
• E) The firm does not rely upon suppliers on important dimensions such as quality,delivery,and cost.

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Definitions:

John Maynard Keynes

A British economic thinker whose insights led to significant shifts in macroeconomic practices and the economic approaches of governments.

Economy

The organized system of human activity involved in the production, consumption, and trading of goods and services.

Say's Law

An economic principle that suggests supply creates its own demand, meaning production of goods and services generates the purchasing power needed to buy those goods and services.

Supply

The total amount of a product or service that is available for purchase at any given price in a given market.