Asked by Bruno Freitas on May 27, 2024
Verified
The goal of ___ is to take advantage of international wage gaps and the availability of skilled labour by contracting for goods and services in low-cost foreign locations.
A) exporting
B) importing
C) licensing
D) global sourcing
E) direct investment
Global Sourcing
Global sourcing involves procuring goods or services from suppliers located in different countries around the world to take advantage of lower costs, unique capabilities, or other strategic benefits.
International Wage Gaps
The disparities in income levels for similar jobs across different countries.
- Discriminate among diverse international business transactions such as exporting, importing, licensing, franchising, and making direct investments.
Verified Answer
HN
Heather NeubeckerMay 30, 2024
Final Answer :
D
Explanation :
The description provided matches the definition of global sourcing, which involves outsourcing to low-cost foreign locations for goods and services. The other options, exporting, importing, licensing, and direct investment, do not necessarily involve taking advantage of international wage gaps and the availability of skilled labor as a primary motivation.
Learning Objectives
- Discriminate among diverse international business transactions such as exporting, importing, licensing, franchising, and making direct investments.