Question: Multinational enterprises (MNEs) often consider engaging in global sourcing by assessing make and/or buy decision options for an input. For example, Toyota produces components such

Multinational enterprises (MNEs) often consider engaging in global sourcing by assessing make and/or buy decision options for an input. For example, Toyota produces components such as seats and arm rests in its subsidiaries but also purchases some portion from local independent suppliers in its many international markets.

Why do many MNEs choose to undertake global sourcing? How does the make or buy decision impact on an MNEs competitive advantage? Use examples throughout your analysis.

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