A Characteristic of Outsourcing Is

question 5

Multiple Choice

A characteristic of outsourcing is

• A) completely unrelated to vertical integration
• B) likely to be profitable exactly when vertical integration is unprofitable
• C) it prevents a firm from focusing on its core competencies
• D) it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries to increase their price and encourage or protect domestic industry.

Imported Oil

Oil that is bought from foreign countries to meet domestic consumption demands.

Tariff Revenue

Income earned by a government from imposing taxes on imported goods.

Imported Oil

Oil that is bought from other countries for use, reflecting dependency on foreign sources for energy supply.