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

---

Definitions:

Anis/o

A prefix meaning unequal or dissimilar.

Eosin/o

A prefix relating to eosinophils, a type of disease-fighting white blood cell, often associated with allergic reactions and infections.

Erythr/o

A prefix used in medical terms to denote a relation to red or red blood cells.

Hemat/o

A prefix relating to blood.