Dp 10 - Global Considerations

Question 1

Global Sourcing of Inputs

Answer 1

a business acquitting raw materials and resources from overseas suppliers

Question 2

Global Sourcing of Inputs: +

Answer 2

+ Able to source materials that may not be readily available in its country of operation
+ There is greater access to cheaper raw materials and resources from overseas, allowing a business to reduce its operating costs

Question 3

Global Sourcing of Inputs: -

Answer 3

• Materials may be damaged during transport
• May incur additional expenses through tariffs

Question 4

Overseas Manufacture

Answer 4

involves a business producing goods or services outside of the country where its headquarters are located

Question 5

Overseas Manufacture: +

Answer 5

+ Greater access to highly skilled employees who have expertise in production
+ Overseas workers are provided with employment and income

Question 6

Overseas Manufacture: -

Answer 6

• Poor corporate social responsibility practices in the country may reflect badly on the business
• Delivery is time-consuming compared to manufacturing goods in a domestic location

Question 7

Global Outsourcing

Answer 7

transferring specific business activities to an external business in an overseas country

Question 8

Global Outsourcing: +

Answer 8

+ Allocate more resources and focus on its own areas of expertise
+ Productivity may increase as external business has the expertise to complete the specified tasks more efficiently

Question 9

Global Outsourcing: -

Answer 9

• Poor corporate social responsibility practices performed by external business may reflect badly on the business’s reputation
• Poor communication and language barriers with the external business may lead to delays