What is global sourcing? Identify its advantages and disadvantages? Be able to elaborate these advantage and disadvantages and provide an example. How is global sourcing impacted by (1) trade agreements and (2) quality considerations? How and why might cultural considerations undermine a company’s efforts at global sourcing?
What is global sourcing? Identify its advantages and disadvantages? Be able to elaborate these advantage and disadvantages and provide an example. How is global sourcing impacted by (1) trade agreements and (2) quality considerations? How and why might cultural considerations undermine a company’s efforts at global sourcing?
Chapter9: Reaching Global Markets
Section: Chapter Questions
Problem 3DYMP
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What is global sourcing? Identify its advantages and disadvantages? Be able to elaborate these advantage and disadvantages and provide an example. How is global sourcing impacted by (1) trade agreements and (2) quality considerations? How and why might cultural considerations undermine a company’s efforts at global sourcing?
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Step 1 - Introduction
When a company purchases materials or orders services from any overseas company in order to save money, better quality, etc. it is known as global sourcing. It is similar to sourcing but the only difference is the contract is made with an overseas company.
Global sourcing is a well-practiced method by many firms because of the unavailability of similar services in their own country. Also, many raw materials are such that they are available only at some specific locations.
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