On one hand, international service companies will increase the original price of the company, mainly because to the original demand, now one will also need to add the additional charges of the international service companies, acting as intermediaries. However, on the other hand, it is more viable for the original producing companies to outsource, due to a lower opportunity cost.
Again, this type of judgment is functional in a non-transnational economy as well, but in an international context, one tends to have an atomicity of potential international service providers, outsourcing can be extended virtually to no limits and, additionally, the overall costs of the producing company are likely to be much smaller. As shown, this only works in an international capitalist system, where supply and demand work freely on the market, only then is the producer looking for the lowest costs for his company in a global context and only then will he be determined to make the best choices in this sense.
On the other hand, the supply chains also enter the same judgment in an international context. As the mechanism and the composite actors and entities that take a product or service from its producer and deliver it to its final consumer, supply chains exist in the national as in a global framework. The reason and explanation for their existence is similar to the one use in the previous paragraphs when referring to the international service: in a (global) capitalism, competition and the forces of the market drive economic entities towards achieving the best performances for the company they lead.
In following this goal and approach, companies use the free market and the available global opportunities to provide the best solutions for their goals. At lower prices, driven down by the existing competition in the international market, producing companies are able to get their products to their customers at higher efficiency rates, eventually...
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