It is not only ethical but strategically appropriate to switch to new supply chain partners if other partners can be identified who can perform the function less expensively, more efficiently/effectively, or both.

True or False?

True

Explanation:

On the long run, business loyalty tends to be rewarded, but sometimes a company needs to look for new partners in order to reduce their costs. The company that has the lowest production and/or distribution costs will have a strategic advantage in the market, since they can sell their products at a lower price or simply make more money selling their products at a regular price.

Answer: The correct answer is "TRUE".

Explanation: The statement "It is not only ethical but strategically appropriate to switch to new supply chain partners if other partners can be identified who can perform the function less expensively, more efficiently/effectively, or both." is TRUE because it is ethical and appropriate to switch to supply chain partners as long as the new ones serve to perform their functions more effectively, minimizing costs and as a consequence maximizing profits.