Exam 17: Global Sourcing

Front-office activities cannot be classified under BPO.

The relocation of a business process or entire manufacturing facility to a foreign country is known as ________.

The likelihood of a firm internalizing marketing and branding instead of outsourcing it is high.

Global sourcing improves agility by shedding unnecessary overhead.

In a short essay, describe three key drivers responsible for the recent growth of global sourcing.

Critics of global sourcing maintain that it ________.

Value chain is the collection of logistics specialists and activities that provides inputs to manufacturers or retailers.

Which of the following is true with regard to the risks of global sourcing?

In advanced economies, firms generally do not outsource value-chain activities because they fear the loss of proprietary knowledge and trade secrets.

To maximize returns, management should outsource those activities ________.

Environmental challenges of global sourcing include currency fluctuations, tariffs and other trade barriers, and adverse macroeconomic events.

The procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent suppliers is known as ________.

All business activities and processes lend themselves to global sourcing.

What are the potential problems that critics point to with regard to global sourcing? Why is offshoring often referred to as a process of "creative destruction"?

Which of the following is the best example of a back-office BPO activity?

Front-office activities typically include internal, upstream business functions.

Fun Play Global Sourcing (Scenario) Fun Play Inc., a company manufacturing toys for children, has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist its managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the outsourced activities should be located. -Which of the following would most likely be considered by the consultants while deciding whether to keep each value-adding activity in the home country or locate it in a foreign country?

A ________ is the firm's integrated network of sourcing, production, and distribution, organized on a worldwide scale and located in countries where competitive advantage can be maximized.

Which of the following is true with regard to offshoring?

________ refers to sourcing from the firm's own production facilities.