global consideration

Question 1

Overseas manufacture

Answer 1

Involves a business choosing to manufacture overseas to reduce labour, overhead and component costs while keep research and short run manufacturing business in Australia

Question 2

Global outsourcing

Answer 2

Means that some part of a business operation is transferred to an external person or business in another country

Strength of this is it can mean improved quality because of the access to expert knowledge and high quality service

A weakness is that management may have less control over the production process

Question 3

Global sourcing for inputs

Answer 3

Buying inputs from other markets in other countries. This is referred to as global sourcing.

Strength of this is that it reduces costs as products overseas may be cheaper

A weaknesses is that there can be hidden associated with different costs and timezone