BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681
BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681

Solutions

Chapter 10, Problem 1DQ
Textbook Problem

Discuss whether globalization and the subsequent growth in worldwide sourcing will have a positive or negative effect over the long run in the United States. Why? What are the alternatives to worldwide sourcing?

Expert Solution
Summary Introduction

To explain: If globalization and growth in worldwide sourcing will have a positive or negative impact in the long run in Country U and the possible alternatives to worldwide sourcing.

Worldwide sourcing:

It is the seeking of goods and services beyond the borders of a region. It the process where organizations look for the most cost-efficient place globally to manufacture their goods. Most organizations choose a global sourcing strategy as the costs are usually lower abroad.

Explanation of Solution

It can be said that Country U is no longer the leader in product and process technology. There are other countries who have developed cutting-edge technologies in many fields such as electronics. Hence, it is made a negative impact on Country U as it is not the only country with advanced technology.

The main notion for many companies is to purchase leading technologies and hence they have no option but to pursue worldwide sourcing. Companies in Country U often stuck to suppliers who produced low-quality products. Hence, companies started to look at worldwide sourcing as an alternative to getting high-quality products.

The possible alternative to worldwide sourcing is that suppliers need to invest more in the quality of the products they deliver to companies. This will enable them to reinvent themselves as a company which produces quality products and the companies will look to conduct business with them again for their quality.

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