A focal firm that acquires supplies from its foreign subsidiary is participating in which of the following activities?

Question

Quizplus · Accepted Answer

Captive sourcing refers to a situation where a company acquires goods or services from its own foreign subsidiary rather than from an independent supplier. This is often done to maintain control over the production process and to take advantage of lower costs in foreign markets.

A Focal Firm That Acquires Supplies from Its Foreign Subsidiary