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Engage Electronics Manufactures High-End Home Audio Equipment

Question 45

Multiple Choice

Engage Electronics manufactures high-end home audio equipment. The costs to produce many of the internal components have risen drastically over the past three years, so it is considering other options. Which scenario would best lead to lowered costs for Engage?


A) offshoring the production of components overseas
B) signing a franchise agreement to have another manufacturer produce the components
C) expropriating the components from a smaller competitor
D) creating a strategic alliance with a competitor to share costs for the components
E) searching for and contracting with a foreign subsidiary to produce the components

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