Which of the following is NOT a potential challenge for global sourcing?

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BlackTom AI · Accepted Answer

Question restated: Which of the following is NOT a potential challenge for global sourcing? Options: 1) Long delivery lead times, 2) Costs involved in selecting foreign suppliers, 3) Labor and legal problems, 4) Reduction of international trade barriers.

Option 1: Long delivery lead times. This is typically a challenge in global sourcing because distances, customs, and transit complexities can cause delays. It can impact inventory, production schedules, and customer satisfaction. Therefore, this is indeed a potential challenge.

Option 2: Costs involved in selecting foreign suppliers. Evaluating and qualifying suppliers across borders involves due diligence, audits, travel, and time. These activities add to total cost and complexity, making it a genuine challenge in global sourcing.

Option 3: Labor and legal problems. Cross-border sourcing often raises concerns about labor standards, compliance with local laws, contract enforcement, and regulatory risk. These are well-known challenges when sourcing internationally.

Option 4: Reduction of international trade barriers. A reduction in trade barriers generally represents a decrease in friction for global sourcing and can be viewed as an opportunity or benefit rather than a challenge. It is not typically categorized as a challenge; instead, it can facilitate sourcing from a broader set of suppliers and markets. The framing here is that lowering barriers tends to make global sourcing easier, not harder, which is why this option stands out as not being a challenge.

In summary, the first three options describe common difficulties encountered in global sourcing, whereas the fourth describes a potential advantage rather than a challenge. This distinction explains why it is not considered a challenge in most analyses of global sourcing.

OSCM 363-001 Concept Check6: Global Sourcing Decisions

Which of the following is NOT a potential challenge for global sourcing?

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