May 19th, 2016
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Why source internationally/worldwide?The reasons why companies pursue worldwide sourcing include;a) Cost/price benefitsSaving s of 20 to 30% may be available. Cost differentials between countries arise because of;Lower labor ratesDifferent productivity ratesPossible willingness to accept a lower profit marginExchange rate differencesLower-cost inputs for materialsGovernment subsidiesPurchasing should consider only suppliers that are capable of meeting rigid quality and deliverystandards, although far too often price differentials become the primar

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