OPER-3006EL Chapter Notes - Chapter 2: World Trade Organization, Business Cycle, North American Free Trade Agreement
11 Sep 2018
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Chapter 2 - operations strategy in a global. A global view of operations and supply chains. Since the early 1990"s, nearly 3-billion people in developing countries have overcome the cultural, religious, ethnic, and political barriers that constrain productivity and are now players on the global economic stage. As these barriers disappear, simultaneous advances are being made! Globalization means that domestic production and exporting may no longer be a viable business model, and no longer guarantees success or even survival. We have identified 6 reasons why domestic business operations decide to change to some form of international operation. Foreign locations with lower wages can help lower both direct and indirect costs, as well as the less stringent government regulations on a wide variety of practices. Shifting low-skilled jobs to another country has several potential advantages: Moving lower-skilled jobs to a lower-cost location frees higher-cost workers for more valuable tasks.
