Which of the following is a valid reason for pursuing global sourcing?

Pursuing global sourcing allows companies to concentrate on their core competencies, which is a vital reason for this strategy. When a company focuses on what it does best—its core competencies—it can enhance efficiency and productivity. By sourcing materials or components from different parts of the world, firms can delegate non-core activities to specialized suppliers who can produce such items at lower costs or with better quality. This not only enables companies to optimize their operations but also fosters innovation and competitive advantage by allowing them to allocate more resources to their primary business activities.

While avoiding high prices and securing exclusive products are also valid aspects of global sourcing strategies, they do not capture the broader strategic benefit provided by focusing on core competencies. Companies often engage in global sourcing not just to reduce costs but to leverage the strengths of other entities, improving their overall business model and market position.