BU491 Chapter Notes - Chapter 2: Deglobalization, Product Liability, Splinternet
Document Summary
Economies of scale and scope (low-cost volume production) was initial motivation for global coordination. Factor cost differential (e. g. labor, raw material): access to resources at the best possible prices difference in factor costs as home countries do not always have the resources they need initial motivation for global coordination. Global enterprises as change agents: the internal re-structuring allowed competitors to gain a ca that accelerated the global integration of many industries. Global chess- a new competitive strategy which could be used only by companies that implemented a coordinated strategy, to managing global ops as interdependent units. Levitt: globally standardized products sold worldwide consequences of tailoring its product to the needs of multiple markets (puts at disadvantage, efficiency in global production, believes that the world"s needs and desires have been irrevocably homogenized. Shock alone are not a sign of instability. A nation"s stability is determined by the capacity to withstand shocks and the capacity to not produce them.
