Exam 14: Outsourcing as a Supply-Chain Strategy

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The term __________ has been created to describe the return of business activity to the original firm.

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The theory of __________ 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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Outsourcing is not a new concept; it is simply an extension of the long-standing practice of subcontracting production activities.

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

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Which of the following is a key issue coupled between ethics and outsourcing?

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

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

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Core competencies are good candidates for outsourcing.

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

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Outsourcing is an extension of the long-standing practice of __________ production activities.

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A firm is evaluating country risk as a first step in its outsourcing provider selection process. Legal issues, currency risk, political risk, and cultural compatibility have been assigned weights of 30%, 10%, 20%, and 40%, respectively. Three countries were scored on each of those risk factors (see table below) using a scale of 1-10, with a score of 1 meaning high risk and 10 meaning minor risk. Using the factor-rating method, which country appears to have the least risk overall? Country A Country B Country C Legal issues 2 6 10 Currency risk 8 4 2 Political risk 5 8 2 Cultural compatibility 3 1 2

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Identify some ethical principles as applied to outsourcing.

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Has there been any political backlash in the United States resulting from outsourcing in foreign countries? Explain.

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