Using foreign companies with lower wages to generate manufacturing resources as a company’s procurement strategy. A company may be able to lower operational expenses by locating companies operating on leaner budgets than domestic operations. Part of a company’s global sourcing strategy is low-cost country sourcing. Also refer to outsourcing, international procurement organization (IPO).

TLD Example: The new retail store opened to much fanfare, but it remains to be seen whether its low-cost strategy will bring it the market share it needs to stay in business.

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