3.6 Summary

Globalization gives tremendous opportunities for companies to increase competitive advantages by using international sourcing or acquiring cutting-edge technologies. Globalization has significantly improved businesses by increasing the availability of labour globally and production flexibility. In addition, labour costs in many countries are cheap, which helps companies move their production process to third-party or external providers with whom the firm has a contract. As a result, the firm has gotten a lot of advantages, such as access to specialized resources and reduced fixed costs. The process of purchasing services or goods worldwide to bid on contracts is called international procurement. The process is increasingly essential for organizations globally. It helps organizations enhance their competitive position, meet customer expectations, improve profits, and add value by finding suppliers who meet the organization’s strategy.