Question

Cat's Coaster Company uses cork in all of the protective drink coasters that it manufactures. If Cat's enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products, this would be

Answer 1

If Cat's Coaster Company enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products, this would be considered a form of outsourcing.

Step-by-step explanation:

If Cat's Coaster Company enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products, this would be considered a form of outsourcing. Outsourcing is the practice of contracting with an external supplier or company to perform certain tasks or provide goods or services that were previously produced in-house.

In this case, Cat's Coaster Company is relying on the cork exporter from Portugal to supply the cork it needs instead of producing it internally. This decision may be driven by factors such as cost-effectiveness, quality, or availability of cork. By outsourcing the procurement of cork, Cat's Coaster Company can focus on its core competencies and allocate resources more efficiently.

Answer 2

Answer: industrial purchasing.

Explanation: in this case, Cat's Coaster Company is buying to convert material into finished goods and product. It entails buying raw materials. Components, supplies and consumable stores, spares and tools, machines and equipment and office appliances.