Photo AI
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 brand... 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 sourcing goods and services from the most cost-effective suppliers worldwide, irrespective of their geographical location. By focusing on the lowest-cost suppliers, companies can reduce their operational costs and enhance their competitiveness in the global market.