Low-Cost Country Sourcing Trends: A Descriptive Study


Although the term low-cost country sourcing is relatively new, its roots in the concept of international trade are almost as old as trade itself. However, the industry has experienced dramatic changes over the last few decades. Instead of operating in a geographically concentrated area and selling to a large market, the constituent parts of the corporate value chain are being relocated world-wide. As an example, consider a global automotive company: design and marketing may be conducted at R&D facilities in the EU and India; components may be sourced in China, which are later assembled in Eastern Europe. Final products can then be distributed world-wide, focusing on the US, Europe and Japan as primary sales markets.


Supply Management Direct Supply Internal Customer Delivery Reliability Human Resource Management Internal 
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© Deutscher Universitäts-Verlag | GWV Fachverlage GmbH, Wiesbaden 2007

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