As Americans we know that most American manufactures are looking for any which way to
make a profit. One of the most popular methods that has been growing over these last few years is
international purchasing. This is most popular in American markets due to the international agreements
that promote free trade and give an open opportunity for firms to move their supply bases. It also
provides an improvement in quality, cost, and delivery performance. It gives the chance for the
manufactures to broaden their knowledge with the help of an international company. There are also
various methods for firms to employ in international purchasing. It enables them to set up an
international purchasing office or use their existing personal to handle transactions, instead of hiring
another employee for a fee. There are also many international trade organizations that help the firms
reduce tariff and nontariff barriers with other countries. So in the end international purchasing seems to
be something that every American industry should consider, but in the end is it truly beneficial for
America?
There are many areas in global sourcing that show that it is indeed something that all American
firms should do. Though, as the saying goes nothing is too good to be true. There are potential
challenges for global sourcing. Our textbook states in a whole what industries have faced in the struggle
of global sourcing. The complexity and costs involved in selecting foreign suppliers and dealing with
duties, tariffs, custom clearance, currency exchange, and political, cultural, labor, and legal problems
present major challenges for an international buyer. It is these challenges that the buyer fails to see
when considering global sources, it is crucial for in industry to outweigh all the negatives before seeing
any positives.
