3.14 Global Considerations in OM

What is Global Sourcing?

the practice of seeking the most cost-effective raw materials and other inputs from overseas suppliers

Advantages (4) and Disadvantages (2) of Global Sourcing

reduced costs, new potential markets, greater access to resources, increasing capacity of total supply. common supply interruptions, ethical considerations,

What is Overseas Manufacture?

the production of a good in a country that is different to the location of the businesses head quarters

Advantages (3) and Disadvantages (3) of Overseas Manufacture

access to different skills, take advantage of tax incentives, cost-effective. local job loss, damage during delivery, ethical consideration

What is Global Outsourcing?

the contracting of a specific part of business operations to an external person or business in another country

Advantages (4) and Disadvantages (2) of Global Outsourcing

improved quality due to expert service, business can focus on core activities, cost-effective, increased productivity. management has less control, loss of local jobs