Final answer:
Global sourcing refers to the practice of obtaining goods, services, or resources from suppliers located in different countries. It helps companies reduce costs, access specialized skills, and expand their market reach.
Step-by-step explanation:
Global sourcing refers to the practice of a company obtaining goods, services, or resources from suppliers located in different countries around the world. It involves the sourcing of products, manufacturing, and services from various global locations to maximize efficiency and competitive advantage. With the advancements in technology and transportation, companies can now easily source materials, labor, and expertise from different parts of the world to reduce costs, access specialized skills, and expand their market reach.
For example, a clothing company based in the United States may source fabric from India, employ designers from Italy, and manufacture the garments in Vietnam. By strategically sourcing different components of their supply chain globally, the company can benefit from cost savings, access to unique resources, and diverse market perspectives.