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 would most likely be considered by the consultants while deciding whether to keep each value-adding activity in the home country or locate it in a foreign country?

Question

Quizplus · Accepted Answer

The consultants would consider whether different value-adding activities can be effectively configured across the world. This involves analyzing the comparative advantage of different countries in performing these activities, the costs associated with outsourcing, the quality of the output, and other factors. The other options mentioned are not relevant to the decision of whether to outsource an activity or not.