Question

Grace Apparel Inc. has decided to procure fabrics required for its garments from external suppliers instead of maintaining its own dyeing and weaving facilities. How will this decision affect the firm

Answer 1

The decision will help the Firm purchase fabrics with more flexibility and at lower prices than when they produce them

Step-by-step explanation:

Deciding to stop maintaining your own facilities used for production of fabrics to be used for final production as Grace Apparel inc have done and deciding to procure fabrics/materials required for production from external sources will provide the firm the opportunity to purchase goods at comparably lower prices. it also helps them to compare the varying prices in the market for goods and services thereby giving them an in-depth knowledge of prices