Which of the Following Is True with Regard to Strategies

question 4

Multiple Choice

Which of the following is true with regard to strategies for minimizing the risks of global sourcing?

• A)To ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources.
• B)To maximize returns and minimize risks, management should outsource core business operations.
• C)Because production quality in an emerging market rarely varies over time, managers at the focal firm are not obliged to closely monitor manufacturing processes.
• D)Firms must refrain from maintaining their own sourcing operations abroad in order to trim costs and minimize risks stemming from frequent currency fluctuations.

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Definitions:

Medium of Exchange

An instrument or system used to facilitate the sale, purchase, or trade of goods between parties.

Welfare Banks

Financial institutions or programs designed to support low-income individuals or families, offering services like microloans or savings accounts with beneficial terms.

Financial Services

Economic services provided by the finance industry, including banking, insurance, investment management, and securities trading.

Public Assistance

Public assistance refers to government programs that provide financial aid to individuals or families in need, often based on income or other eligibility criteria.