Exam 17: Global Sourcing

In a short essay, describe how cost efficiencies are a benefit to sourcing abroad, and explain how information and communications technology can help reduce costs for an international firm.

The likelihood of internalizing ________ rather than outsourcing it is considerably high.

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 is most likely to be the consultants' utmost concern while deciding if clothing for Fun Play dolls needs to be outsourced?

Global sourcing has gained momentum in the current phase of globalization.

Captive sourcing is an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications.

Audio Component Outsourcing (Scenario) Echo Corp., a company based in Boston, manufactures high-quality audio components, such as speakers, amplifiers, and receivers for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in global sourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that global sourcing would enable the firm to be more competitive without sacrificing quality. -Which of the following is a benefit of global sourcing?

What role do logistics play in global sourcing? In a short essay, discuss how logistics relates to cost. Provide an example of a firm that lost money as a result of inadequate logistics.

Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities.