Answer to Question #176224 in Economics of Enterprise for Sibabalwe

Question

Explain to the CEO the costs the organisation may be incurring for sourcing from international suppliers

Answer 1

The organisation is may incur the following costs

1) Unpredicted and rising shipping costs.

2) Cost of delays or loss of goods in transit.

3)Rising costs of transactions, such as documentation fees, contract management fees and third-party supplier audit fees.