Question

Global sourcing becomes a catalyst to overhaul organizational processes and company operations and increases the firm's overall competitive advantages by ________.

A) encouraging firms to train unskilled labor through extensive training programs
B) allowing firms to free expensive analysts, engineers, and managers from routine tasks to spend more time on high-value-adding activities
C) relaxing quality standards
D) installing a system of rewards to motivate employees"

Answer 1

Global sourcing enhances competitive advantages by enabling firms to reallocate high-cost resources to focus on activities that contribute more significantly to the company's value proposition.

Step-by-step explanation:

Global sourcing increases a firm's overall competitive advantages by allowing firms to free expensive analysts, engineers, and managers from routine tasks to spend more time on high-value-adding activities. In the wake of globalization, companies have looked to outsource and offshore parts of their operations to improve efficiency and reduce costs. Through offshoring, companies move operations overseas to access cheaper labor markets, whereas outsourcing involves hiring outside firms to perform tasks previously done internally. These strategies not only cut down on direct labor costs but also free up valuable resources within the company to focus on activities that add more value to the company and enhance its competitive position in the market.