Global Manufacturing
Today’s manufacturing activity is not
confined to domestic production; rather it is conducted
globally and internationally, by realising the optimum combination
of resources of production available throughout the world.
This international business activity, unhampered by the
boundaries of a country, is a movement towards globalisation.
Firms, which conduct business and have manufacturing
activities by establishing manufacturing sites in various
countries across the world, are called multinational enterprises
or international corporations.
Theories concerning globalisation
Manufacturing activities, which maximise total
profits by installing production sites (factories) in various
countries is called international production/manufacturing
or foreign production. This world-class manufacturing called
global manufacturing is now recognised as manufacturing
strategy.
Why global manufacturing?
Global manufacturing, involves the transfer
of internal management resources to foreign countries with
low labour cost or those exporting a great number of products
in order to win internationally competitive advantages through
‘economies of network’.
The ratio of foreign production over total
production is called the foreign production rate.
Export And Import of Industrial Products
Japan, Germany and most developing countries
have export driven economies and aspire to trade surplus.
The United States ranks first both in export and import,
Germany second and Japan third. Japan’s special feature
is its export of industrial products contributes 97% while
the import contributes only 53%. The figures for United
States are 76% and 79% and 90% and 82% for Germany.
