Final answer:
Global sourcing is a low-control strategy involving sourcing from independent suppliers through contractual agreements, aiming to leverage global efficiencies such as lower labor costs. It is a common practice in the current phase of globalization, contrary to it having declined. Global sourcing could indeed be a firm's initial step into international business.
Step-by-step explanation:
The correct answer to this question is B) Global sourcing is a low-control strategy in which the focal firm sources from independent suppliers through contractual agreements. Global sourcing involves finding the most cost-effective location for manufacturing a product or a service, which could be anywhere around the globe. This strategy allows companies to take advantage of cheaper labor markets, more favorable economic conditions, as well as potentially lower costs associated with raw materials and production.
It is not accurate to say that global sourcing has declined significantly in the current phase of globalization; in fact, with advancements in transportation and communication, as well as international trade agreements, global sourcing has become a prevalent practice. Additionally, global sourcing can indeed represent a firm's initial involvement in international business as it seeks to leverage global efficiencies in the delivery of its products or services.
Moreover, relocating a business process or an entire manufacturing facility to a foreign country, which is sometimes referred to as offshoring, is often a result of the global sourcing strategy and aims to take advantage of lower costs of operation, particularly in labor.