Consider the challenges of global manufacturing and supply chain management. Pay attention to page 348 attached. Then:Identify and mention the four production location strategies.Discuss the order in which you understand strategies should be developed and why. 348.INTERNATIONAL BUSINESS MANAGEMENTFour major location strategies for Global Production Networks can be identified:Centralized Global Production: The entire production occurs within only one nation (orregion) and is exported thereafter on the global market. This is particularly the case foractivities that are difficult to relocate, such as goods linked to the location of resources,difficult to reproduce (e.g. luxury and craft) or depending on massive economies of scale.Regional Production: Takes place within each region that manufactures goods with the sizeof the production system related to the size of the regional market. This system dependsmore on a regional accessibility than on economies of scale. It particularly applies to well-known manufacturing technologies and/or to products having high distribution costs (e.g. softdrinks).●Regional Specialization: This global production network involves a spatial division of theproduction based on the theory of comparative advantages. Each region specializes in theproduction of a specific good and imports from other regions what it requires.Vertical Transnational Integration: This global production network is another variant ofspecialization. Different stages of the production occur at locations offering the bestcomparative advantages. Raw materials are extracted from locations where they are themost accessible, while assembly is performed in regions having low labor costs or highlevels of expertise depending on the type of product or the stage in its manufacturing....Each production sector has a different production network. The automotive and electronicssectors are good examples of vertical integration. For instance, the manufacture of atelevision generally implies stages of research and development in the United States andJapan (as well as being important markets). Several nations, such as England, South Koreaand Germany provide components. The assembly takes place in low wages countries suchas China, Mexico, and Thailand. Labor costs are a key element of this system, but also itslevel of expertise.Venkateswaran, N.. International Business Management, New Age International Ltd,2011. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/nucportal-ebooks/detail.action?docID=3017434.Created from nucportal-ebooks on 2024-02-17 17:39:29.

The case study analyzes four key creation area systems inside worldwide creation organizations:…

Consider the challenges of global manufacturing and supply chain management. Pay attention to page 348 attached. Then: Identify and mention the four production location strategies. Discuss the order in which you understand strategies should be developed and why.

Consider the challenges of global manufacturing and supply chain management. Pay attention to page 348 attached. Then: Identify and mention the four production location strategies. Discuss the order in which you understand strategies should be developed and why.

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Question

Consider the challenges of global manufacturing and supply chain management. Pay attention to page 348 attached. Then:

Identify and mention the four production location strategies.

Discuss the order in which you understand strategies should be developed and why.

348.
INTERNATIONAL BUSINESS MANAGEMENT
Four major location strategies for Global Production Networks can be identified:
Centralized Global Production: The entire production occurs within only one nation (or
region) and is exported thereafter on the global market. This is particularly the case for
activities that are difficult to relocate, such as goods linked to the location of resources,
difficult to reproduce (e.g. luxury and craft) or depending on massive economies of scale.
Regional Production: Takes place within each region that manufactures goods with the size
of the production system related to the size of the regional market. This system depends
more on a regional accessibility than on economies of scale. It particularly applies to well-
known manufacturing technologies and/or to products having high distribution costs (e.g. soft
drinks).
●
Regional Specialization: This global production network involves a spatial division of the
production based on the theory of comparative advantages. Each region specializes in the
production of a specific good and imports from other regions what it requires.
Vertical Transnational Integration: This global production network is another variant of
specialization. Different stages of the production occur at locations offering the best
comparative advantages. Raw materials are extracted from locations where they are the
most accessible, while assembly is performed in regions having low labor costs or high
levels of expertise depending on the type of product or the stage in its manufacturing....
Each production sector has a different production network. The automotive and electronics
sectors are good examples of vertical integration. For instance, the manufacture of a
television generally implies stages of research and development in the United States and
Japan (as well as being important markets). Several nations, such as England, South Korea
and Germany provide components. The assembly takes place in low wages countries such
as China, Mexico, and Thailand. Labor costs are a key element of this system, but also its
level of expertise.
Venkateswaran, N.. International Business Management, New Age International Ltd,
2011. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/nucportal-
ebooks/detail.action?docID=3017434.
Created from nucportal-ebooks on 2024-02-17 17:39:29.

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