Meaning of terms used in International Procurement

Procurement is the process of acquiring foods and services from external sources. Goods, services and works supplied by external sources must meet the standard requirement outlined by the buyer. International procurement is a term used to describe the process of sourcing goods and services around the world to satisfy diversified needs of the organisations objectives.

It is the process of allowing organisations/firms around the world to bid on contracts for goods and services. The concept of international procurement has gained popularity as shipping and transportation cost has reduced due to cheap and readily available fuel. The globalisation of large corporation has allowed them to reap the benefits of lower labour and material cost while still
selling the same quality and quantity of products.

In order to build a global economy, each nation must have some contribution that they can offer to potential customers if a country is limited to just the goods it can produce internally. Then it either needs to invest significantly to meet every need.

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