Purchasing products and services of foreign origin can be extraordinarily challenging. At the same time, many new issues must be addressed if a sourcing team is to ensure that its organization receives the right quality, in the right quantity, on time, with the right services, at the right price.

In recent years, the term "foreign sourcing" has largely been replaced with "international sourcing": the process of purchasing from suppliers outside of the firm's country of manufacture. At a number of leading firms, international sourcing is being replaced with a broader international approach called "global sourcing." Professor Monczka and Trent define global sourcing as "the integration and coordination of the requirements across worldwide business units, looking at common items, processes, technologies, and suppliers."1

In order for the purchaser to buy internationally, a contract had got to be concluded first, so as to ensure the benefits of both parties...