The phenomenon of outsourcing has its roots in the economic theory of
Outsourcing reflects comparative advantage because activities can be allocated to suppliers with lower opportunity costs. Gains from such specialisation do not require one…
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The phenomenon of outsourcing has its roots in the economic theory of
Answer and explanation
Correct answer D
Outsourcing reflects comparative advantage because activities can be allocated to suppliers with lower opportunity costs. Gains from such specialisation do not require one supplier to have an absolute advantage in every activity.
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West Bengal SET (WB SET)