Outsourcing Has Led to Increasingly Global Supply Chains

question 102

Essay

Outsourcing has led to increasingly global supply chains.Describe three ways that a more global supply chain might be risky for a company that outsources.

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Definitions:

Common Stock

A type of equity ownership in a corporation, giving holders voting rights and a share of profits in the form of dividends.

Ownership Share

The portion of a company or asset owned by an individual or entity, typically represented by stock in the company.

Corporation

A legal entity recognized by law, formed to conduct business and capable of suing or being sued.

Financial Intermediary

An entity that acts as a middleman between two parties in a financial transaction, such as banks, investment funds, and insurance companies.