Question

Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.

a) True
b) False

Answer 1

False. Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.

Step-by-step explanation:

False. Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies. This is known as offshoring, where companies physically move their operations overseas to access cheaper labor markets. Outsourcing, on the other hand, involves hiring outside contractors, sometimes abroad, to perform tasks the company used to perform internally. Both offshoring and outsourcing allow companies to reduce costs and maintain control over their operations.