Globalization Impact: Week 13/14 Quiz
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Explain the impact of technology on globalization, and its implications for new market opportunities and cost savings.

Technology accelerates globalization by providing opportunities for new markets on the demand side and cost savings on the supply side. It allows businesses to access new markets, reduce production costs, and improve efficiency through automation and communication technologies.

Discuss the challenges and benefits of worldwide sourcing for businesses.

The challenges of worldwide sourcing include trade balances, currency fluctuations, and documentation requirements such as letters of credit, import licenses, and commercial invoices. However, the benefits include access to technology, quality products, and the introduction of competition to domestic suppliers, as well as the ability to react to competitor buying patterns and establish a global market presence.

Explain the role of international purchasing offices (IPOs) and their significance in global sourcing.

International purchasing offices (IPOs) play a vital role in global sourcing by identifying potential suppliers, negotiating supply contracts, obtaining product samples, performing supplier site visits, representing the buyer to suppliers, and managing countertrade requirements. They facilitate the sourcing process and ensure successful international transactions.

What are the typical international transaction costs involved in global sourcing, and how do they impact businesses?

<p>The typical international transaction costs include base price, packaging, transportation, payment terms, and taxes, as well as inventory carrying costs. These costs impact businesses by influencing pricing strategies, supply chain management, and overall profitability in global sourcing transactions.</p> Signup and view all the answers

Discuss the future trends and success factors in global sourcing, and their implications for businesses.

<p>Future trends in global sourcing include the development of higher-level skill sets, continued cost reduction pressures, seeking suppliers with global capabilities, and the need to establish integrated systems. Success factors in global sourcing involve site-based operational control, which ensures efficient and effective sourcing operations for businesses.</p> Signup and view all the answers

What is the acronym for the act that addresses foreign corrupt practices?

<p>FCPA = Foreign Corrupt Practices Act</p> Signup and view all the answers

Which document is not typically required in international transactions?

<p>Import Licenses</p> Signup and view all the answers

What is the role of Third Party Support in global sourcing?

<p>Assist in managing counter trade requirements</p> Signup and view all the answers

What does IPO stand for in the context of global sourcing?

<p>$IPOs = International Purchasing Offices$</p> Signup and view all the answers

What are the typical components of international transaction costs?

<p>$PAYMENTS TERMS, TAXES, INVENTORY CARRYING COST$</p> Signup and view all the answers

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