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Global Sourcing in International Business – Vassileva, A., Economic Alternatives Journal, Issue 3, 2011

(Article, Economic Alternatives Journal, Issue 3, 2011)


The article offers a study of present-day modes of international business operations. It explains the nature, types, evolution, benefits, and challenges facing global sourcing as alternative company solutions for international business performance.


Global sourcing, also known as global supply or global purchases, is interpreted as the more familiar business operation import in a narrow sense. In a broader sense it also covers the incoming flows of goods and services as a result of outsourcing, production cooperation, including subcontracting, etc. Although global sourcing has been an established international business practice since the 80s of the 20th century, it receives a new impetus in the current stage of globalization.


Particular attention is paid to outsourcing and co-operative deals as an essential part of global sourcing. Consideration is also given to the attendant risks as well as to certain strategic decisions aimed at minimizing the risk, e.g. caution when selecting among the particular “direct investments” or “outsourcing”, cooperation with the supplier, observation of interests etc.


As the attitude towards global outsourcing is ambiguous, the research presents both its positive and negative effects on national economy. The economic, social, and ethical consequences are examined in light of businesses, the state, and society.