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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Chapter 10 Solutions
Purchasing and Supply Chain Management
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