Which of the Following Statements Is True of Outsourcing

Multiple Choice

Which of the following statements is true of outsourcing?

A) It reduces economic risk by facilitating the purchase of large insurance policies.
B) It reduces production risk by eliminating delays in the timely receipt of needed parts.
C) It reduces political risk by enabling the company to avoid investing in plants and equipment abroad.
D) It reduces currency risk by allowing the company to invest the home currency on in-house production facilities.