Which of the Following Is Not an Organizationally-Driven Reason for Outsourcing

question 22

Multiple Choice

Which of the following is not an organizationally-driven reason for outsourcing?

• A)Improve effectiveness by focusing on what the firm does best
• B)Improve flexibility to meet changing demand for products and services
• C)Increase product and service value by improving response to customer needs
• D)Improve credibility and image by associating with superior providers
• E)All of these are organizationally-driven reasons for outsourcing

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Definitions:

Real Wages

Wages that have been adjusted for inflation, reflecting the purchasing power of the income.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to offer at that wage rate.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another that has become relatively cheaper.

Income Effect

Modifications in the earnings of individuals or the broader economy and their effects on the quantity of goods or services demanded.