GENERAL KNOWLEDGE

Detailed explanation-1: -Global sourcing. refers to buying the raw materials, components, or services from companies outside the home country. In a flat world, raw materials are sourced from wherever they can be obtained for the cheapest price (including transportation costs) and the highest comparable quality.

Detailed explanation-2: -Global sourcing is a procurement strategy in which a business buys goods and services from international markets across geopolitical boundaries to save money by using cheap raw materials or skilled labor from low-cost countries.

Detailed explanation-3: -Importing refers to buying goods and services from foreign sources and bringing them back into the home country. Importing is also known as global sourcing.

Detailed explanation-4: -Global sourcing refers to buying the raw materials or components that go into a company’s products from around the world, not just from the headquarters’ country. For example, Starbucks buys its coffee from locations like Colombia and Guatemala. The advantages of global sourcing are quality and lower cost.

Detailed explanation-5: -Global sourcing, which differs from international buying in scope and complexity, involves proactively integrating and coordinating common items and materials, processes, designs, tech-nologies, and suppliers across worldwide purchasing, engi-neering, and operating locations (Monczka and Trent 1991).