Global Sourcing Business Strategies Quiz Questions
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The procurement of products or services from independent suppliers or company-owned subsidiaries located abroad for consumption in the home country or third country.
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Global Sourcing
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Global Procurement
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Global Purchasing
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All of the above
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Are you ready for an entertaining business quiz? Our ' Global sourcing business strategies quiz questions ' will test your knowledge of various business sourcing strategies models. A business may have the best objective and the best product in the world, but without a proper business strategy on how to achieve the objectives, it is doomed. The global sourcing business See morestrategies quiz below has more. Interestingly you can also play this quiz with your friends for a good time. Learn more and grow! Have fun!
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- 2.
Valued-added activity conducted in house is:
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Captive Sourcing
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Externalization
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Internalization
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Outsourcing
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None of the above
Correct Answer
A. InternalizationExplanation
Internalization refers to the practice of conducting valued-added activities within the organization itself, rather than outsourcing them to external parties. This allows the organization to have more control over the process and ensure that it aligns with its goals and objectives. By internalizing these activities, the organization can also leverage its own resources and capabilities to achieve greater efficiency and effectiveness. This approach is often preferred when the organization has the necessary expertise and resources to handle the activities internally.Rate this question:
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- 3.
Externalization is considered:
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Back-office activities
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Contract Manufacturing
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Value-added activity conducted by independent supplier
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Importing of goods and services
Correct Answer
A. Value-added activity conducted by independent supplierExplanation
Externalization refers to the practice of outsourcing certain activities or functions to external suppliers or service providers. It involves transferring tasks or processes that were previously conducted internally to an independent supplier. In this context, externalization is considered a value-added activity because it brings additional benefits or advantages to the organization. By outsourcing certain functions, the organization can focus on its core competencies and strategic activities, while the independent supplier brings specialized expertise and resources to enhance the overall value of the organization's operations.Rate this question:
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- 4.
An arrangement in which the focal firms contracts with an independent supplier to manufacture products according to well defined specifications:
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Captive Sourcing
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Product design
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Contract Manufacturing
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Offshoring
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Global Sourcing
Correct Answer
A. Contract ManufacturingExplanation
Contract manufacturing refers to an arrangement where a focal firm outsources the manufacturing of its products to an independent supplier. This supplier is responsible for producing the products according to the specifications provided by the focal firm. This arrangement allows the focal firm to focus on other aspects of its business while leveraging the expertise and resources of the supplier for manufacturing. It is a commonly used strategy to reduce costs, improve efficiency, and gain access to specialized manufacturing capabilities.Rate this question:
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- 5.
Jobs that are NOT easy to offshore include:
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Large scale manufacturing industries
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Auto, Service (highly labor intensive), Information-based industries
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Doctor, dentist, lawyer
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Software preparation industry
Correct Answer
A. Doctor, dentist, lawyerExplanation
Jobs that require a physical presence and direct interaction with clients or patients, such as doctors, dentists, and lawyers, are not easy to offshore. These professions involve providing personalized services and require face-to-face consultations, examinations, and treatments. Offshoring these jobs would be challenging as it would be difficult for the professionals to physically be present in another country to deliver their services. Additionally, the legal and regulatory requirements of these professions may also vary across countries, making it more complex to offshore them.Rate this question:
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- 6.
Benefits of global sourcing include:
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Cost efficiency
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Access to qualified personnel abroad
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Increase speed to market
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Access to new markets
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All of the above
Correct Answer
A. All of the aboveExplanation
Global sourcing refers to the practice of obtaining goods or services from different countries to take advantage of cost savings, skilled labor, and market opportunities. The benefits of global sourcing mentioned in the options are all valid. Cost efficiency is achieved by finding cheaper suppliers or production locations. Access to qualified personnel abroad allows companies to tap into a larger talent pool and benefit from specialized skills. Increase speed to market is possible by leveraging different time zones and 24/7 operations. Access to new markets enables companies to expand their customer base and increase sales. Therefore, the correct answer is "All of the above."Rate this question:
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- 7.
Captive sourcing is:
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Internal upstream business functions
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Geographic arrangement of locations
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Sourcing from the firms own production facilities located abroad
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Focal firm contract with independent supplier to manufacture products
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None of the above
Correct Answer
A. Sourcing from the firms own production facilities located abroadExplanation
Captive sourcing refers to the practice of sourcing goods or services from a company's own production facilities located abroad. This means that the company owns and operates these facilities, allowing them to have more control over the production process and potentially reduce costs. It is different from sourcing from independent suppliers or outsourcing to other companies.Rate this question:
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- 8.
One of the major challenges of global sourcing is:
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Partner selection
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Exchange rates
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Increased complexity of worldwide network
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Constraint ability to safeguard intellectual assets
Correct Answer
A. Exchange ratesExplanation
Global sourcing refers to the practice of procuring goods or services from different countries to take advantage of cost savings, expertise, or resources. One of the major challenges of global sourcing is exchange rates. Fluctuations in exchange rates can significantly impact the cost of sourcing, as they determine the conversion rate between currencies. A strong domestic currency can make imports more expensive, while a weak domestic currency can make exports more attractive. Therefore, managing and predicting exchange rate fluctuations is crucial for companies engaged in global sourcing to ensure profitability and competitiveness.Rate this question:
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Current Version
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Aug 21, 2023Quiz Edited by
ProProfs Editorial Team -
Apr 04, 2010Quiz Created by
Mastone
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