Positioning against foreign supply sources in an international purchasing environment

Abstract In an era of global sourcing, the multinational firm's success often hinges on its astuteness in selecting from a set of domestic and foreign suppliers. When compared with domestic supplier selection, international supplier selection decisions are fraught with countless risks and complexities. These may include the political atmosphere, tariff barriers, cultural and communication obstacles, trade regulations and agreements, currency exchange rates, cultural differences, and variations in ethical and quality standards. Consequently, the decision-making environment becomes less clear and more confusing. As business-to-business marketers search for adaptive strategies to effectively cope with this environment, new approaches appear more attractive. This article offers a multiple attribute structure for illustrating the potential advantages of a U.S. supplier over foreign suppliers and also for reducing the uncertainty associated with supplier selection in global markets. The concept is presented, and various recommendations are posited with practical illustrations.

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