The development of international trade is also likely to shift as multinational corporations see several Newly Industrial Countries or NICs such as South Korea, Taiwan, Hong Kong and Singapore as well as China. In addition to being a potential market, they also become important sources of resource acquisition and multinational company locomotives. In addition, the location of these countries is also a place to produce and obtain resources for Multinational companies that are cheaper than in their home countries. For example, you can take a look at how the global sourcing in Hong Kong is on http://www.thomasdinnocenzifamily.org/hong-kong.php.
There are also some trends in global sourcing strategy. In the last 30 years, there has been a shift in global sourcing strategy. During the 1970s and 1980s, efforts to obtain supplies or sources were based on cost savings, but in the 1990s, attention shifted to quality and reliability (trustworthiness) in resource acquisition.
There are several reasons why a domestic business operation develops into an international business operation so that it has to have a global sourcing strategy. The reasons are:
– Reducing costs, location elsewhere or foreign with lower wage workers, taxes, and tariffs can help lower costs.
– Improving the supply chain can often be improved by placing facilities in the country where the particular resource is located.
– Providing better goods and services requires a better understanding of the local culture, so the company can improve its goods and services to meet the needs that fit the culture of marketing.
– Attracting new market share, international operations require interaction with foreign customers, suppliers, and other business competitors, then international companies should study new goods and services opportunities.
– Learning to improve operations, companies can serve themselves and customers well, when they are always open to new ideas.
– Gaining and retaining global talent, global organizations can target and retain good employees, by offering better job opportunities.