Chapter Review
Key Takeaways
- Cheap labour costs in many countries help companies move or out source their production process to third-party or external providers with whom the firm has a contract. Companies have benefitted from 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 helps organizations enhance their competitive position, meet customer expectations, reduce costs, and add value by finding suppliers who meet the organization’s strategy.
- Public procurement has developed strategically, accelerating business with global best practices.
- The legal side of international trade standards emphasize fair, transparent, competitive and cost-effective practices.
- Different procurement laws may be inconsistent in trade partnerships.
- Core global standards apply to the procurement life cycle, international laws and procedures support the entire sourcing process.
Explore and Engage
Discussion Questions
- In the modernization of public procurement, what is the benefit of globalization?
- What international developments changed the global environment for public purchasing?
- How do public authorities regulate international trade and domestic supplier sourcing in the global context?
- Public procurement rules vary around the world; why is it important to understand the similarities and differences?
Active Learning
