alleryStart learning →What is outsourcing?
ABuying raw materials from a supplier in the same country
BSelling a licence to a firm based in a foreign country
CSending work functions to another country, costing home jobs
DMoving a head office from one city to another within a country
Answer & Solution
Correct answer: C. Sending work functions to another country, costing home jobs
1. Outsourcing means sending work functions to another country.
2. The consequence named is that domestic workers lose their jobs.
3. Call service centres were among the first functions moved this way.
4. Engineering and research and development work is now outsourced as well.
5. Selling a licence abroad is licensing, which is a different way of entering a market.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.2 Why Nations Trade_
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