Companies that outsource to the extent that they adopt a "designer role" in global competition (i.e., offer innovations in product design without investing
In manufacturing process technology) have been described by some as being:
A) vertical corporations.
B) horizontal corporations.
C) hollow corporations.
D) supply and demand corporations.
E) monopoly manufacturers.

Question

Quizplus · Accepted Answer

Companies that outsource to the extent that they adopt a "designer role" in global competition without investing in manufacturing process technology are referred to as hollow corporations. This means that they do not have the physical infrastructure to produce their products and rely on outsourcing from other companies to manufacture their designs.

Companies That Outsource to the Extent That They Adopt a "Designer