Chapter 17 - Global Sourcing

Question 1

Global Sourcing

Answer 1

The procurement of products or services from independent suppliers or company-owned subsidiaries located abroad for consumption in the home country or in a third country

Question 2

Business Process Outsourcing

Answer 2

The outsourcing of business functions to independent suppliers, such as accounting, payroll, human resources, IT services, customer service and technical support

Question 3

Configuration of Value Adding Activity

Answer 3

The pattern or geographical arrangement of locations in which the firm carries out value-chain activities

Question 4

Captive Sourcing

Answer 4

Sourcing from the firm’s own production facilities located abroad

Question 5

Contract Manufacturing

Answer 5

An arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications

Question 6

Offshoring

Answer 6

The relocation of a business process or entire manufacturing facility to a foreign country

Question 7

Global Supply Chain

Answer 7

The firm’s integrated network of sourcing, production and distribution, organised on a worldwide scale and located in countries where competitive advantages can be maximised