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Question: Which of the following is a disadvantage of outsourcing? A. higher cash flow B. hollowing out of the corporation C. reduced strategic flexibility 0 D. required high investment

Transcribed text From Image: Which of the following is a disadvantage of outsourcing? A. higher cash flow B. hollowing out of the corporation C. reduced strategic flexibility 0 D. required high investment

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Hollowing out of the corporation is a disadvantage of outsourcing.

Hollowing out is a term which describes the threat to workers because they could lose their job. Hollowing out can be defined as “To minimize the manufacturing costs many companies prefer less developed nations to set up manufacturing units. In developed countries manufacturing costs are high and they are being “hollowed out” poses a threat to many workers because they could be jobless by giving their job to someone in another country.


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