MGNT 4670 Ch 1 GLOBALIZATION 2013

Production globalization

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Unformatted text preview: lization Sourcing of goods and services from locations around the world to capitalize on national differences in cost or quality of the factors of production: • Labor • Land • Capital Companies can • lower overall cost structure • Improve quality or functionality of product offering Globalization of Production Globalization Historically this has been primarily confined to manufacturing enterprises example: Vizio flat panel TV’s Increasingly companies are taking advantage of modern communications technology, and particularly the Internet, to outsource service activities to low­cost producers in other nations example: health care services Global Production Swan Optical Manufacturing HOME BASE Design 1-5 The Drivers of Globalization The Post World War II Decline in Trade Barriers And Increase in FDI Technological change: Telecommunications & Microprocessors Internet and the Web Transportation technology Average Tariff Rates on Manufactured Products Products...
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