A Characteristic of Outsourcing Is

question 26

Multiple Choice

A characteristic of outsourcing is

• A) completely unrelated to vertical integration
• B) likely to be profitable exactly when vertical integration is profitable
• C) can allow a firm to focus 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:

Real Interest Rates

The interest rate adjusted for inflation, reflecting the real cost of borrowing and the real yield to lenders or investors.

Nominal Interest Rates

The stated or advertised interest rate on a loan or investment, not adjusted for inflation.

Expected Inflation Rate

The anticipated rate at which the general level of prices for goods and services will rise over a specific period.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the rate at which prices increase.