Question

In regards to quality risks, which of the following types of firms would be least likely...

In regards to quality risks, which of the following types of firms would be least likely to involve outsourcing to less-developed countries?

A.
rubber processing

B.
repetitive assembly

C.
packaging

D.
pharmaceuticals

E.
steel manufacturing

Business   Operations-Management   
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Homework Answers

Answer #1

The correct answer is option D - Pharmaceuticals.

Pharmaceutical firms can incur significant quality risks when their business is outsourced to less developed countries due to the following reasons:

1. Lack of knowledge about the standard quality procedures and quality risk management in these countries

2. Non-compliance of quality measures and monitoring could lead to potential damage

3. Health risks associated with substandard quality of drugs is very high

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