Answer the following statements true (T) or false (F)

Question

1. A wholly owned subsidiary is the global expansion strategy with the highest risk and investment.
2. When U.S. companies hire UPS to conduct some of their logistics functions for them it is known as outsourcing. 
3. Offshoring is defined as using suppliers outside the home country to provide labor, goods, or services. 
4. If you can describe a job precisely, or write rules for doing it, it is protected against offshoring. 

Answer 1

1. TRUE
A wholly owned subsidiary is the global expansion strategy with the highest risk and investment.
2. TRUE
A common practice of many companies, outsourcing is defined as using suppliers outside the company to provide goods and services. One example is airlines, which are increasingly farming out aircraft maintenance to other companies.
3. TRUE
Global outsourcing, or offshoring, is defined as using suppliers outside the United States to provide labor, goods, or services.
4. FALSE
As soon as a job becomes routine enough to describe in a spec sheet, it becomes vulnerable to outsourcing. Says Fred Levy, a Massachusetts Institute of Technology economist, "If you can describe a job precisely, or write rules for doing it, it's unlikely to survive. Either we'll program a computer to do it, or we'll teach a foreigner to do it."