Question

"Global Sourcing Debate (Scenario)

Prof. Sean Peterson's class of international business has been studying the controversies surrounding global sourcing. Prof. Peterson divided the class into two groups, A and B. Group A was assigned the task of defending global sourcing, whereas Group B was assigned the task of arguing against global sourcing.

The concept of creative destruction can be reasonably used by Group A to support the view that ________.

A) firms that engage in offshoring are more likely than not to fail in the long run
B) offshoring forces unskilled workers to seek additional education
C) global sourcing creates opportunities and stimulates innovation
D) outsourcing technical jobs leads to brain drain"

Answer 1

Group A can argue that global sourcing fosters creative destruction, leading to opportunities and innovation as old industries are replaced by new, more efficient ones. Although it may lead to job losses, it can also encourage domestic firms to become more innovative and competitive.

Step-by-step explanation:

The concept of creative destruction can be reasonably used by Group A to support the view that global sourcing creates opportunities and stimulates innovation. Creative destruction refers to the idea that the old ways of doing things are destroyed and replaced by new and more efficient methods. In the context of global sourcing, this means that, while jobs may be lost in developed countries, new industries and advances often emerge as a result of the need to remain competitive. This can lead to an overall improvement in technology and management practices, fueling progress and potentially leading to the creation of new jobs in different sectors or regions. Additionally, the increased competition can encourage domestic firms to innovate to retain a competitive edge.