(Answered) Explain the rationale for global trade and gscmExplain the rationale for global trade and gscm

4. When should a company choose to globalize its supply chain versus local sourcing?
A firm should globalize if access to specialized inputs, lower production costs, or larger markets outweigh longer lead times and geopolitical risks. Local sourcing fits when speed, quality control, resilience, or regulatory compliance are critical. Compare total cost of ownership, demand volatility, logistics capacity, and risk tolerance before deciding.