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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Global sourcing paper

Global sourcing paper

Q Imagine that you work for a custom-bicycle company that has thus far only manufactured in the United States. You’re under pressure to reduce costs. What options would you explore? Would you consider sourcing some of the components from countries with lower material costs? Would you consider outsourcing some of the manufacturing? Would you set up a subsidiary in a country with lower labor and material costs to handle the manufacturing? Explain the advantages or disadvantages of these options. Provide your evaluation in a three-page paper.

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The aim of the following Global sourcing paper is to evaluate whether the decision of outsourcing manufacturing and materials from a country where the price is comparatively low, will be feasible or not. The paper will hence evaluate the advantages and disadvantages of that decision of setting up a subsidiary in a country with lower labor and material costs for handling manufacturing, so that the aim of reducing costs can be successfully accomplished. Here, it is required mentioning that the above-mentioned decision is required to be taken in order to successfully control the pressure to minimize costs for a custom-bicycle company that so far has pursued its production in the United States of America.