Dicuss the problems associated with global sourcing. Solution Global sourcing is defined as a centralized procurement strategy for a multinational company, wherein a central buying organization seeks economies of scale through corporate-wide standardization and benchmarking. Global Sourcing is that strategy of conducting business, in which an organization or enterprise seeks to find and employ most cost effecient location location for manufacturing a product, even if the location is in a foreign country. Foreign Investment, in developing cheap labor and natural resources abundant countries like India, by developed and costly countries is an example. Although, Global Sourcing has its own advantages and has been in practice rigorously, there are certain challenges and problems associated with it. These are discussed as below:.