Captive sourcing is also known as _____.

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BlackTom AI · Accepted Answer

The question asks about what captive sourcing is also known as, so we should evaluate each option in turn.
Option 1: 'business process outsourcing' — While captive sourcing involves outsourcing processes, this term generally refers to engaging an external service provider rather than creating a wholly owned subsidiary. It is not the standard synonym for captive sourcing, making this choice misleading.
Option 2: 'foreign direct investment' — This aligns with the core idea of captive sourcing: a company sets up its own subsidiary or branch in another country to perform specific processes, reflecting ownership and direct investment in a foreign operation. This framing matches the typical definition of captive sourcing.
Option 3: 'securitization' — This term belongs to finance and risk management, describing packaging assets into securities for sale, which has no direct relation to captive sourcing. It is conceptually distant from outsourcing or internal offshore operations.
Option 4: 'domestic in-house activity' — Captive sourcing refers to creating an owned operation, often abroad, not staying within the domestic, internal environment. This description fails to capture the cross-border or owned-entity aspect central to captive sourcing.

Across the options, the rationale hinges on ownership, cross-border setup, and the distinction between using an external vendor versus building and owning your own operation abroad. The option that best captures this essence is the one describing direct ownership and investment in a foreign operation, which is the hallmark of foreign direct investment. The other choices either describe outsourcing to third parties, unrelated financial concepts, or stay limited to internal domestic activities, none of which fully embody captive sourcing.

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MGS*3025*W02 Quiz 1- Requires Respondus LockDown Browser

Captive sourcing is also known as _____.

View Explanation

Log in for full answers

Similar Questions

A third party adds most value when:

The idea behind _______ is “focus on what you do best and let others do the rest”.

What is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house?

Blank ______ is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.

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Question at position 14 Buying materials and components from suppliers instead of making them in your company-owned operations, is known as?OutsourcingSelective SourcingOffshoringInsourcing

Which of the following statement regarding outsourcing is TRUE?

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

MGS3025W02 Quiz 1- Requires Respondus LockDown Browser

Part 1What is transferring a firm's activities that have traditionally been internal to external suppliers?Part 2 A. keiretsu network B. make-or-buy C. outsourcing D. vertical integration