Exam 14: Outsourcing as a Supply-Chain Strategy

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In the electronics industry, the __________ sets environmental standards, bans child labor and excessive overtime, and audits outsourcing producers to ensure compliance.

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The number-one reason driving outsourcing for many firms is to focus on core competencies.

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According to research, which of the following is the most common reason cited for outsourcing failure?

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What do you think would be a major risk for a government trying to promote its country as a low-cost producer, filled with ready and willing outsourcing providers?

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Identify several outsourcing processes, that is, activities that firms should undertake when embarking on outsourcing.

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Some organizations use outsourcing to replace entire purchasing, information systems, marketing, finance, and operations departments.

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__________ is the practice of moving a business process to a foreign country but retaining control of it.

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The factor-rating method is an excellent tool for dealing with both country risk assessment and source provider selection problems.

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Nearly any business activity can be outsourced.

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A firm is considering two countries to outsource its call center. Currently the weighted factor method has given a score of 120 to the first country and 110 to the second country. If the second country wants to improve its score in the labor rating (weight=1.5), how much must it increases its labor rating by to have a score greater than or equal to country 1?

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An organization's unique skills, talents, and capabilities are referred to as its core competencies.

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Outsourcing is the practice of moving a business process to a foreign country but retaining control of it.

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The theory of comparative advantage states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

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Which of the following is not true regarding core competencies?

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A company that had previously sent its call center business to India has now brought that business back to small towns in the U.S. such as Dubuque, Iowa. This is an example of

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Outsouring is the practice of procuring from external sources services or products that are normally part of an organization.

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Research data suggest that foreigners outsource far more services to the U.S. than American companies send abroad.

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Identify five main advantages of outsourcing.

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Which of the following statements is most accurate?

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Which of the following statements is most accurate?

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