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Please do not plagiarize or use a previous posted answer! More and more companies outsource...

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Finance

Please do not plagiarize or use a previous posted answer! More and more companies outsource key operations. The reasons for doing so vary and include cheaper labor costs, avoiding large investments in xed assets, the opportunity to take advantage of economies of scale in manufacturing, and divesting operations where the company does not have a competitive advantage. How does this trend affect the nancial statements? Does it really lead to value creation or are gains in efciency offset by lower prot margins? What effects arise when plants are closed in domestic markets?

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