Question

Which of the following is true with regard to strategies for minimizing the risks of global sourcing?

A) To ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources.
B) To maximize returns and minimize risks, management should outsource core business operations.
C) Because production quality in an emerging market rarely varies over time, managers at the focal firm are not obliged to closely monitor manufacturing processes.
D) Firms must refrain from maintaining their own sourcing operations abroad in order to trim costs and minimize risks stemming from frequent currency fluctuations."

Answer 1

The true statement with regard to strategies for minimizing the risks of global sourcing is to ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources.

Step-by-step explanation:

The true statement with regard to strategies for minimizing the risks of global sourcing is A) To ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources.

Monitoring suppliers and their activities is crucial to minimize risks in global sourcing. It helps the focal firm to ensure that the suppliers maintain the required quality standards and adhere to ethical and legal practices. By closely monitoring the manufacturing processes, the focal firm can proactively address any issues that may arise and ensure the success of the sourcing ventures.