Global Sourcing
The practice of sourcing goods and services from international markets to leverage cost advantages, diversify supply chains, and access specialized products.
Implications
The practice of procuring goods, services, or materials from suppliers located in different parts of the world, often to take advantage of cost efficiencies, quality, and innovation, while managing risks related to currency fluctuations, trade policies, and supply chain complexities.
Example
Example: A consumer electronics company engages in global sourcing by purchasing components from suppliers in Japan, Taiwan, and China, ensuring access to the best technology and cost advantages available globally.
Related Terms
Different from domestic sourcing, which relies on suppliers within a single country, global sourcing involves managing a more complex supply chain with international suppliers and considerations.
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