GM Typically Solicits Bids from Global Suppliers to Produce a Particular

Multiple Choice

GM typically solicits bids from global suppliers to produce a particular component and awards a 1-year contract to the supplier that submits the lowest bid. At the end of the year, a contract is once again put out for bid, and once again the lowest cost supplier is most likely to win the bid. Which of the following is GM using?

A) Strategic outsourcing
B) Competitive bidding
C) Strategic bidding
D) Long-term alliance
E) Hostage taking