What is global sourcing Assignment Example | Topics and Well Written Essays - 250 words

What is global sourcing - Assignment Example Global sourcing is important due to the fact that it broadens the knowledge on how to conduct businesses in other countries (Schneid, 2010). In addition, global sourcing is always cheaper than producing the goods and services on one’s own. Furthermore, global sourcing leads to reciprocating of trade. For instance, it ensures both buying as well as selling an organization at the same time (Sollish and Semanik, 2011). This leads to creation of a mutually beneficial economic bond between the companies involved in the transaction, as well as, create strong business relations between the countries involved. Global sourcing also allows a nation to tap into the raw materials of other nations, at lower costs under the cover of trade relations (Oshri and Global Sourcing Workshop, 2010). This is very beneficial if the buying nation has limited resources, or if it is in need of preserving its resources. These are some of the reasons as to why a company based in the United States would choose to purchase items and services from foreign