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International Business: The New Realities, 5th Edition
book

International Business: The New Realities, 5th Edition

by S. Tamer Cavusgil, Gary Knight, John R. Riesenberger
January 2019
Intermediate to advanced content levelIntermediate to advanced
576 pages
33h 19m
English
Pearson
Content preview from International Business: The New Realities, 5th Edition

Benefits, Risks, and Responsibilities of Global Sourcing

  1. 13.5 Describe the benefits and risks of global sourcing.

Global sourcing brings enormous benefits to firms, primarily leading to improved performance and superior competitive advantages. However, global sourcing also entails various risks. Firms that undertake global sourcing are confronted with challenges and opportunities for corporate social responsibility.

Benefits of Global Sourcing

The main benefits of global sourcing are cost efficiency and the ability to achieve strategic goals. Let’s examine these.

Cost Efficiency

The primary rationale for global sourcing is to reduce the firm’s costs of inputs and operations. Exhibit 13.10 reveals typical manufacturing wages per hour of workers ...

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Publisher Resources

ISBN: 9780136763017