A consumer durable company produces and markets refrigerators locally.It faces competition from cheap imports.To compete with the cheap imports, it starts procuring the component parts of the refrigerator from a country with low manufacturing costs.The above is an example of:
A)open-sourcing.
B)in sourcing.
C)global sourcing.
D)home sourcing.
E)farm shoring.

Question

Quizplus · Accepted Answer

The company is sourcing component parts from a country with low manufacturing costs to compete with cheap imports, which is an example of global sourcing. This strategy involves procuring goods and services from across geopolitical boundaries, often to take advantage of lower costs.

A Consumer Durable Company Produces and Markets Refrigerators Locally