Outsourcing Strategies

question 91

Multiple Choice

Outsourcing strategies

• A)are nearly always a more attractive strategic option than merger and acquisition strategies.
• B)carry the substantial risk of raising a company's costs.
• C)carry the substantial risk of making a company overly dependent on its suppliers.
• D)increase a company's risk exposure to changing technology and/or changing buyer preferences.
• E)involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.

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Definitions:

Ultimatum Game

A game in experimental economics in which two players interact to decide how to divide a sum of money that is given by the experimenter.

Dictator Game

An economic experiment where one player (the 'dictator') determines the division of a sum of money between themselves and another player.

Behavioral Economists

Economists who study how psychological, cognitive, emotional, cultural and social factors affect economic decisions of individuals and institutions.

Threat of Rejection

The possibility of being denied acceptance or approval in a particular situation, often causing anxiety or influencing behavior.