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If a computer contains a microprocessor from Costa Rica and a hard disk drive from the Philippines, the computer manufacturer, who is based in Texas and operates across Europe and West Asia, most likely uses ________ as an entry strategy.

A) exporting
B) franchising
C) global sourcing
D) licensing

1 Answer

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Final answer:

The computer manufacturer likely uses global sourcing as an entry strategy due to the international components involved in the manufacturing process, which is common in today's global marketplace.

Step-by-step explanation:

If a computer contains a microprocessor from Costa Rica and a hard disk drive from the Philippines, and the computer manufacturer is based in Texas and operates across Europe and West Asia, the computer manufacturer most likely uses global sourcing as an entry strategy. Global sourcing is a procurement strategy aimed at exploiting global efficiencies in the delivery of a product or service. These efficiencies include low-cost skilled labor, low-cost raw material, and other economic factors like tax breaks and low trade tariffs.

We live in a global marketplace, where companies routinely source components and services from around the world in order to be competitive. For example, a company might design products in one country, manufacture components in various other countries, assemble products in yet another country, and then sell the finished goods internationally. This approach to manufacturing and distribution is made possible by trade agreements, advancements in transportation, and communication technologies, making it a primary strategy for large multinational corporations.

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