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Problem:

The tremendous growth of international trade over the precedent decades has been both a primary cause and consequence of globalization. According to World Trade Organisation (WTO), the volume of world trade has raised 27 fold from $296 billion in 1950 to more than $8 trillion in 2005. Although international trade experienced a contraction of 12.2 % in 2009—the steepest decline since World War II—trade is again on the upswing. Subsequently, more firms are purchasing goods and services from overseas markets. Emerging countries like China and India have benefitted from international trade. However, international procurement represents many challenges to businesses.

Required:

problem 1: As a procurement manager of a large firm, prepare a guide to international procurement for those in your department who are unfamiliar with the concept highlighting the potential benefits as well as challenges for the organisation when buying from overseas suppliers.

problem 2: Analyse the role played by multinational corporations in international trade.

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