Many Firms Benefit from an Increasing Ability to Outsource Manufacturing

question 57

Multiple Choice

Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend.

• A) business
• B) environmental
• C) commerce
• D) statutory
• E) economic

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Definitions:

International Accounting Standards

A set of accounting guidelines that aim to standardize accounting practices across countries, facilitating the comparison of financial statements globally.

Multinational Corporations

Large corporations that operate and provide goods or services in multiple countries.

Information Technology

The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.

International Standards

These are agreements set by international organizations that dictate certain specifications, guidelines, or characteristics to ensure products, services, and systems are safe, reliable, and interchangeable worldwide.