An Example of Global Outsourcing Is Seen When Gap Inc

question 172

True/False

An example of global outsourcing is seen when Gap Inc. uses low-cost Caribbean labor to cheaply produce its clothing, and then finishes off and sells its clothing in the United States.

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Definitions:

Balance Sheet

A document that presents a snapshot of a corporation's financial health, by detailing assets, liabilities, and shareholders' equity on a specific date.

Direct Financing Leases

Leases where the lessor purchases an asset and leases it out, and the lease payments cover the purchase cost, plus a return on investment to the lessor.

Net Investment

The total amount spent on purchasing new assets and maintaining existing ones, minus any depreciation.

Initial Direct Costs

Expenses directly associated with acquiring or initiating a lease, which can include commissions, legal fees, and other incremental costs.