A large clothing manufacturer in NSW wants to reduce input costs - HSC - SSCE Business Studies - Question 7 - 2022 - Paper 1

To reduce input costs, the most effective strategy is to implement global sourcing. By sourcing materials and labor from global suppliers, a manufacturer can take advantage of lower production costs in different regions. This can include obtaining raw materials at a lower price, finding more affordable labor, or even leveraging trade agreements. Other options such as increasing product variety or employee training may not directly lead to a reduction in input costs, while implementing sustainable packaging typically involves upfront costs that do not necessarily contribute to reducing input expenses.