Benefits of Economies of Scale by Global Sourcing

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Benefits of Economies of Scale by Global Sourcing
Presented By Dragon Sourcing
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Introduction
The concept of local procurement has been
replaced by global sourcing. Producers venture
out to the entire world and look for production
factors that are of international quality and
affordably priced. With easing of tariff rules
and opening up of several international trade
routes, manufacturers always search a global
source for procurement.
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Economies of Scale
To earn the benefits of economies of scale it is
necessary to use available resources to their
optimum level. Resources capital, labour, land,
raw materials, and technology need to be utilized
to their optimum extent for yielding returns that
justify their usage
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Globalisation
Globalisation is aimed at benefitting medium and
large scale companies that engage in
international trade. It gives them the scope of
catering to a larger market. If market size
determines the revenue for a producer then cost
is determined by the source of production factors.
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Cost Factor
The reasons for depending on such a source are
essentially economic. For any manufacturing
facility costing is a determining factor for
fixing the price of output. Cost includes price
of raw materials, wage or salaries of employees,
rent of land, interest on capital, and profit
towards entrepreneurship.
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Contact Us
Dragon Sourcing Shanghai Suite 1502-1503, Jin
Tian Di International Mansions 998, Renmin Road
Shanghai, 200021, P.R.China Tel [phone]
55 Fax [phone] Email
contact.asia_at_dragonsourcing.com Website
http//www.dragonsourcing.com/
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Thank You