Which of the Following Is Not a Potential Problem of Global

question 42

Multiple Choice

Which of the following is not a potential problem of global sourcing?

• A) Long lead times
• B) Poor Quality
• C) Social and Labor Problems
• D) Higher Costs of Doing Business
• E) High Opacity

---

Definitions:

Gain From Trade

The benefit obtained by countries, organizations, or individuals from engaging in exchange or trade.

Absolute Advantage

The ability of an entity to produce a good or offer a service more efficiently than its competitors when using the same amount of resources.

Absolute Advantage

The capability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade and production.