Which of the Following Is Not a Reason Why an Emphasis

question 20

Multiple Choice

Which of the following is not a reason why an emphasis on outsourcing will continue?

• A) The pressure to reduce costs is severe and will only increase.
• B) Globalization and finding lower cost sources in emerging markets will have less and less effect on further outsourcing.
• C) Firms are continuing to become more highly specialized in product and process technology.
• D) Wall Street recognizes and rewards firms that achieve higher return on investment.
• E) The need for responsiveness in the marketplace is increasingly affecting insourcing/outsourcing decisions.

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Definitions:

Shortage

A situation in which the demand for a good or service exceeds its supply at a particular price.

Surplus

An excess of production or supply over demand, often leading to a decrease in prices.

Lower Labor Productivity

A condition where there is a decrease in the amount of goods or services produced per unit of labor.

Technology Production

The process of designing, manufacturing, and introducing new technological goods or services.