Supply Chain Management Professional (SCMP) · Question
What is a key risk associated with global sourcing compared to domestic sourcing?
Global sourcing introduces complexity, including geopolitical instability, currency fluctuations, and longer lead times, increasing overall risk.
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Question: What is a key risk associated with global sourcing compared to domestic sourcing?
Answer options:
- Decreased lead times
- Reduced cultural differences ✅ Higher geopolitical and currency risks
- Simpler logistics and customs procedures
Correct answer: Higher geopolitical and currency risks
Explanation: Global sourcing introduces complexity, including geopolitical instability, currency fluctuations, and longer lead times, increasing overall risk.
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