Global sourcing decisions are having an enormous effect on product development, cost management, exploration of new technologies, delivery reliability, increased flexibility, and the balance of trade among nations. Using suppliers throughout the world has become a necessity for many businesses looking to sustain and grow their competitive advantage
Engaging in an international purchasing decision requires purchasers to pursue a global sourcing process.

Global Sourcing Advantages/Disadvantages
Engaging in international purchasing contains benefits and risks
Advantages | Disadvantages |
Access to a wider range of products and services | Increased product and delivery risk |
Access to high quality | Longer lead times |
Increased continuity of supply | Decline in quality |
Access to lower material, labor, and overhead costs | Variances in currencies and exchange rates |
Access to advanced technologies | Potential cultural conflict |
Access to foreign markets | Higher channel inventories |
Access to new suppliers | Extension of communications |
Ability to engage in countertrade | Domestic social and labor issues |
Higher cost of doing business |