Chapter Questions
Discuss the role and the importance of a purchase order in global sourcing.
Select one of your favorite articles of clothing from your closet. Come up with the best way to describe the required fabric and raw materials for a purchase order, as if you were a sourcing manager for that garment.
Search for "purchase order" online. Find out what type of information purchase orders usually communicate. Discuss how each element could be relevant or not to global sourcing projects.
Compare how letters of credit and document collections in the business setting can be compared with credit card and debit card transactions in the personal setting.
Discuss what types of risks and costs could be involved in international transactions.Explain why it would be a safer and less risky option to get banks involved in global sourcing.
Show real examples where open account and cash in advance could be useful in global sourcing.
Contact various industry members you might know. Ask what the common or preferred payment method is for their international businesses.