APICS Certified Supply Chain Professional (CSCP) — Question 283

Which of the following challenges is a major concern when sourcing globally if a contract requires significant local content percentage?

Answer options

• A. Identifying sources capable of producing the materials
• B. Protecting the firm's intellectual property
• C. Communicating with suppliers and transportation companies
• D. Guaranteeing the security of product in transit

Correct answer: A

Explanation

The correct answer is A because sourcing globally with a local content requirement necessitates identifying suppliers who can meet those production capabilities. Options B, C, and D, while important, do not directly address the challenge of ensuring that local content requirements are fulfilled.