Which of the following statements is most likely to be true of outsourcing?
A) Dispersing value-creation activities through outsourcing tends to increase the costs requires to develop a product offering.
B) In today's world, outsourcing efforts are primarily confined to manufacturing activities, and do not include service activities.
C) Outsourcing production to foreign countries increases the chance for companies to gain significant orders for their products from those countries.
D) Outsourcing always increases the time required to develop a product, and allows no manufacturing flexibility.
E) A multinational company cannot customize its products for local markets of different countries if it outsources its production activities.

Question

Quizplus · Accepted Answer

Outsourcing production to foreign countries can increase the chance for companies to gain significant orders for their products from those countries, as they may have a lower cost of production and therefore be able to offer products at a lower price. This can make the products more attractive to consumers in those countries. The other statements are either false or too generalized.

Which of the Following Statements Is Most Likely to Be