The strategic view of global sourcing suggests that

the firms' innovative activities tend to make mature products obsolete over time a strong legal environment is not the prerequisite for increasing efficiencies by relocating strategic operations abroad

firms that procure supplies from foreign subsidiaries are more likely than not to lose ground to competitors who primarily bank on their own resources just as firms achieve gains in efficiency, productivity, quality, and revenues by leveraging offshore talent, they also obtain the means to turn around failing businesses, speed up innovation, restructure operations, and fund otherwiseunaffordable development projects