Multinational firms must outsource non-core activities to remain competitive. What does this statement mean to you? Provide an example to illustrate your opinion.


This statement means that in order for a company to continue to profit and stay on top they need to outsource to in order to make the cheapest product and make the most profit. Many times there are manufacturer’s overseas that do not charge as much as the suppliers in the same country. Once a company can make a name for themselves and generate clients, they need to focus on maximizing their profit, which could include outsourcing to have your product be made in China, or India. I believe this statement to be accurate, because the labor is cheaper in those countries. One thing you need to keep in mind is that the quality could be worse, so you need to make sure you are still getting the desired quality. For example, if a person makes a company and designs scarves and becomes very successful, they should consider outsourcing and making more scarves in less time for cheaper, because it will allow more business and more money.