The Pros and Cons: International and Domestic Sourcing


This strategy involves a country from a high-cost country area — typically US, UK, Canada, Australia, and West European nations — purchasing materials from resource-rich low-cost countries; think China, India, Indonesia, Bolivia, Brazil, Russia, Mexico, and East European nations. Shipping costs. While shipping is a fairly economical method, the overall cost analysis of low-cost country sourcing and domestic sourcing is critical to the overall cost equation.