Question

GM typically solicits bids from global suppliers to produce a particular component and awards a 1-year contract to the supplier that submits the lowest bid. At the end of the year, a contract is once againput out for competitive bid, and once again the lowest cost supplier is most likely to win the bid. GM is using which of the following?

a. Strategic outsourcing
b. Competitive bidding
c. Long-term contracting
d. Strategic alliance
e. Hostage taking

Answer 1

b. Competitive bidding

Step-by-step explanation:

Competitive bidding -

It is the method , in which the a public bid is issued , where the aim that the company will put best proposal in order to compete for a specific project , is known as competitive bidding.

This process is important for every government agency , which issues any bid .

The method is adapted in order to have a fair and open competition.