APICS Certified Supply Chain Professional (CSCP) — Question 387

Which of the following circumstances reflects a firm that may consider reshoring to reduce the risk of intellectual property theft?

Answer options

• A. A textile firm concerned with product quality
• B. A pharmaceutical firm concerned with counterfeit products
• C. An oil firm concerned with political instability
• D. A financial services firm concerned with cyberattacks

Correct answer: B

Explanation

The correct answer is B, as pharmaceutical firms are particularly vulnerable to counterfeit products that can infringe on their intellectual property. The other options, while valid concerns, do not directly relate to the risk of intellectual property theft; they focus on quality, political issues, and cyber threats.