Which of the following changes can facilitate the transfer or outsourcing of formerly internal activities of a firm?
A)Changes in technology and market structure
B)Decline in domestic input prices
C)Decline in net exports
D)Rapid pace of industrialization

Question

Quizplus · Accepted Answer

Changes in technology and market structure can make it easier to transfer or outsource formerly internal activities of a firm. Advancements in communication technology and improvements in transportation can make it easier to coordinate with external suppliers or contractors. Changes in market structure, such as increased competition, can make firms more focused on cost-cutting measures like outsourcing.

B, C, and D are incorrect choices because a decline in domestic input prices, decline in net exports, and rapid pace of industrialization do not necessarily have a direct impact on the transfer or outsourcing of formerly internal activities of a firm.

Which of the Following Changes Can Facilitate the Transfer or Outsourcing