Multiple choice

A company such as Dell Computers purchases products from suppliers worldwide. This practice is known as

  1. outsourcing

  2. global sourcing

  3. joint demand

  4. derived demand
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Global sourcing refers to the strategic practice of procuring goods and services from international suppliers rather than limiting purchases to domestic sources. Dell Computer's worldwide supplier network exemplifies this approach, allowing companies to leverage cost advantages, quality variations, and specialized capabilities across different countries. This differs from outsourcing (which involves contracting entire business processes) or related concepts like joint demand.

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