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Global Production

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Global Production

Category: Coursework

Subcategory: International Relations

Level: College

Pages: 1

Words: 275

Global Production
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Abstract
Derived from an endless desire to acquire competitive advantage in the industry, firms have developed a need to expand their operations by locating production facilities in various parts of the country. In simple terms, global production involves the general desire of firms to locate similar business activities in different parts of the country with the aim of maximizing income. This piece starts by elaborating the general term of sourcing which precedes any form of global expansion. On the other hand, the text highlights the advantages that a firm is likely to enjoy by embracing global production. These include improvement in the quality of goods and services provided due to global competition as well as financial economies. Moreover, the piece elaborated on drawbacks associated with locating production facilities in various parts of the country. Finally, the text explains by giving an example why a business organization would dislike engaging in global production.
Global operation as applied by many firms has been used successfully to achieve sustainable as well as competitive advantage. This has been facilitated by sourcing aspect which entails the aspect of what to produce and what to acquire from suppliers; a strategic decision that goes ahead global production and procurement. The sourcing decision as it relates to production is dynamic and keeps on changing hence leading to the common practice of in-s…

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