Please elaborate all the questions with good examples.

1. (a) What is outsourcing ?

(b) How does outsourcing help us to reduce cost ?

2. (a) What is economies of scale ?

(b) How does economies of scale help us to reduce cost ?

3. How can you reduce cost by :

(a) Re-locating production facilities;

(b) Simplifying product design.

4. Explain any two of the situations when a business firm may apply low cost strategy.

5. (a) What is a declining industry ?

(b) Explain any two of the methods of cutting costs in a declining industry.

6. (a) What is an emerging industry ?

(b) Explain any two of the strategic avenues for competing in an emerging industry.