White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation.

Outsourcing replaces fixed costs with variable costs—companies onlypay for what they use, rather than maintaining their own fleet.

Option A is incorrectbecause gaining market access is abenefit of offshoring, not outsourcing.

Option C is incorrectas there is no mention of shareholders in the scenario.

Option D is incorrectsince the inefficiency trap relates tooffshoring.

(LO 1.2, See p.44)

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