Fundamentals of Management, 11/e

How Do Organizations Go Global?

As organizations go global, they often use different approaches. (See Exhibit 3–1.) At first, managers may want to get into a global market with minimal investment. At this stage, they may start with global sourcing (also called global outsourcing), which is purchasing materials or labor from around the world wherever it is cheapest. The goal: take advantage of lower costs in order to be more competitive. For instance, Massachusetts General Hospital uses radiologists in India to interpret CT scans.6 Although global sourcing may be the first step to going international for many companies, they often continue using this approach because of the competitive advantages it offers. However, during the last economic crisis, ...