Review the benefits of worldwide sourcing along with the barriers and issues of
ID: 394702 • Letter: R
Question
Review the benefits of worldwide sourcing along with the barriers and issues of worldwide sourcing presented in the chapter. Discuss two benefits you think have been key to companies transitioning to worldwide sourcing. Discuss two barriers/issues that have been the most difficult to overcome within worldwide coursing. You may use an example from your company or an article you found that helps support your reasoning. Review the benefits of worldwide sourcing along with the barriers and issues of worldwide sourcing presented in the chapter. Discuss two benefits you think have been key to companies transitioning to worldwide sourcing. Discuss two barriers/issues that have been the most difficult to overcome within worldwide coursing. You may use an example from your company or an article you found that helps support your reasoning.Explanation / Answer
The followings are the important benefits that worldwide sourcing offers -
1) Vast opportunities to leverage comparative economic gains through reduction in manufacturing cost. Such as access to cheap labors reducing overall production cost.
2) Wide reach to wider variety of customers. Such as extending offerings to unsaturated markets of developing countries.
3) Learning global business skills through expatriation processes.
The followings are few challenges/issues of gloabl sourcing -
1) Hidden implicit cost related to culture, time zones such as great failure may occur due to lack of awareness of forein culture.
2) Financial and political risk involved
3) Long lead times.
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