International sourcing emerged initially as a reactive approach designed to reduce production costs in an effort to neutralize the threat of foreign competition. Today, leading edge firms have shifted the focus of their international sourcing efforts to that of a proactive strategy that pursues a sustainable competitive advantage. This article explores the challenges, requirements, and benefits of international sourcing by means of a brief literature review and a discussion of the results of a survey of purchasing managers. The study focuses on the various aspects of international sourcing that affect its ability to impact a firm's competitiveness.