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A company’s policy is to purchase from lowest-cost suppliers regardless of their location - HSC - SSCE Business Studies - Question 5 - 2013 - Paper 1
Question 5
A company’s policy is to purchase from lowest-cost suppliers regardless of their location. What is this policy an example of? (A) Global sourcing (B) Global branding... show full transcript
Worked Solution & Example Answer:A company’s policy is to purchase from lowest-cost suppliers regardless of their location - HSC - SSCE Business Studies - Question 5 - 2013 - Paper 1
Step 1
What is this policy an example of?
Answer
This policy is an example of Global sourcing. Global sourcing refers to the practice of purchasing goods and services from suppliers located in different countries, allowing a company to obtain materials at the lowest possible price, regardless of geographical boundaries. By focusing on cost-effectiveness, companies can optimize their expenses and improve their overall competitiveness in the market.