IBUS1101 Lecture Notes - Lecture 10: Offshoring, Outsourcing, Business Process Outsourcing
7 Jun 2018
School
Department
Course
Professor
Exporting refers to the strategy of producing products or services in one country (often the
producer’s home country) and selling and distributing them to customers located in other
countries
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Exporting as a foreign market entry strategy
W10/CH13 Exporting and Global Sourcing
Saturday, 19 May 2018
8:14 PM
Textbook Page 1
Textbook Page 2
Managing export-import transactions
When comparing domestic and international business transactions, key differences arise in
documentation and shipping
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Textbook Page 3
Document Summary
Exporting refers to the strategy of producing products or services in one country (often the produ(cid:272)er"s ho(cid:373)e (cid:272)ou(cid:374)try) a(cid:374)d selli(cid:374)g a(cid:374)d distri(cid:271)uti(cid:374)g the(cid:373) to (cid:272)usto(cid:373)ers lo(cid:272)ated i(cid:374) other countries. When comparing domestic and international business transactions, key differences arise in documentation and shipping. When firms import needed goods or services, they engage in global sourcing. Before delving i(cid:374)to this i(cid:373)porta(cid:374)t topi(cid:272), let"s first re(cid:448)ie(cid:449) outsour(cid:272)i(cid:374)g. spe(cid:272)ifi(cid:272)ally, outsour(cid:272)i(cid:374)g refers to the procurement of selected value-adding activities, including production of intermediate goods or finished products, from external independent suppliers. Firms outsource because they are not superior at performing all value-chain activities, and it is more cost effective to outsource these activities. Business process outsourcing (bpo) refers to the procurement of services. When firms engage in bpo, they procure services such as accounting, human resource functions, it services, or technical support, from external suppliers. 4.
