A Firm Is Most Likely to Outsource Services When

question 87

Multiple Choice

A firm is most likely to outsource services when

• A)the cost of production is cheaper when done onshore.
• B)the labor costs are high in the country where the outsourcing partner is.
• C)the human capital is low in the country where the outsourcing partner is.
• D)the effectiveness of services produced internally is less than that produced offshore.
• E)the goods produced onshore are of better quality than those produced offshore.

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Definitions:

Correlation Analysis

The study of how variables are related and the measurement of the strength and direction of this relationship.

Linear Relationship

A type of relationship between two variables where a change in one variable is associated with a proportional change in the other variable.

Independent Variables

Variables in an experiment or model that are manipulated or varied to observe their effects on dependent variables.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.