Question

"Fun Play Global Sourcing (Scenario)

Fun Play Inc., a company manufacturing toys for children, has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist its managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the outsourced activities should be located.

If Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in ________.

A) offshoring
B) contract manufacturing
C) cause marketing
D) captive sourcing"

Answer 1

If Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in captive sourcing.

Step-by-step explanation:

If Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in captive sourcing. Captive sourcing refers to a company sourcing its activities from its own subsidiary, rather than outsourcing to an external contractor. In this case, Fun Play Inc. would be outsourcing its value-chain activities to its own subsidiary, which means it is engaging in captive sourcing.