...Gardner International Economics Group Written Assignment 1 Global Trends: Manufacturing and Outsourcing Over the past decades various businesses across the globe have made shifts in the way manufacturing is handled in their companies. Some have outsourced the full scope of their manufacturing. While others have done partial outsourcing, where partial assembly is returned to the US industry. When manufacturing is outsourced, whether for goods or services, many companies downsize their work force. This creates a loss of jobs for the American industries while increasing jobs in places such as China, India and Indonesia, just to mention a few. Outsourcing, undoubtedly has its comparative advantages as far as having lower wages but it also has risks such as rising costs and trade barriers. It is some of these challenges that is believed to have created a slow re-routing of manufacturing to return to the US Industry. The global trend in manufacturing and outsourcing is that many countries rely heavily on China and other developing nations for manufacturing. For this reason many countries outsource their manufacturing to China. In the article, “The end of cheap China,” the writer reminds us that, “China is the world’s largest manufacturing power and they account for a fifth of global manufacturing.” The primary reason for this trend is due to the cheap labor. It should be noted that global manufacturing is also advantageous to China and other developing nations, since...
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...an excess of the virtue, and the other occurs when the virtue is deficient. The feeling associated with modesty is shame. If there is too much shame, it would be shyness; however not enough shame would be shamelessness. Virtue ethics focuses on choices that an individual should make based on morals that hold true regardless of the laws and customs of a person’s specific culture. Essentially everyone should be held accountable to the same virtues even if local laws and customs allow the behavior. One should apply virtue ethics to both their personal lives as well as their professional lives. In the 1990’s major concerns were exposed in the manufacturing community about working conditions in factories located in third-world countries (Sethi, Veral, Shapiro, & Emelianova, 2010). Major pressure was then placed on numerous manufacturing companies in an attempt to force them to change their practices and improve working conditions in their factories. While it is the goal of every company to continually increase profits, a company should not do so at the expense of another person or culture. Mattel is a company that took it upon themselves to change the way they did business, and improve the lives of their employees working in their overseas factories. Mattel saw the looming public relations storm, and worked to make changes to their policies in order to improve the quality of life and safety for their overseas factory...
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...TM-Chapter 1 (Motivations, Means and Mentalities) In this chapter, a number of important questions that companies must resolve before taking the leap to operate outside their home environment. 1. What market opportunities, sourcing advantages, or strategic imperatives provide the motivation for their international expansion? 2. By what means will they expand their overseas presence-through modes such as exports, licensing, joint ventures, wholly-owned subsidiaries, or some other means? 3. How will the management mentalities – their embedded attitudes, assumptions, and beliefs- that they bring to their international ventures affect their chances of success? Operating in an international rather than a domestic arena presents managers with many new opportunities. Having worldwide operations not only gives a company access to new markets and low-cost resources, it also opens up new sources of information and knowledge and broadens the options for strategic moves that the company might make to compete with its domestic and international rivals. However, with all these new opportunities come the challenges of managing strategy, organization, and operations that are innately more complex, diverse, and uncertain. What is multinational enterprise? * Multinational enterprise has substantial direct investment in foreign countries (Not just the trading relationships of an import-export business), and actively manage and regard those operations as integral parts of the company...
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...history, integrating international world views, with products from manufacturing to cultural resources that promotes worldwide exchanges of ideas, economic impact and global interaction. The major factors which have contributed advances on an exponential scale include transportation in the air, sea, and ground, and the international infrastructure in telecommunications, from fiber optics, global thinking and the World Wide Web2. The processes in globalization has affected small business to large corporations, economics, social cultural resources, including politics from the migration of ideas with support and criticism from cultural differences intertwined with competition. The creativity and innovation from the diverse cultures has exploded into popularity that affect all civilization and lifestyles. Diverse knowledge and the ability to compete on a global scale has changed the way businesses and individuals interact. The advances in technology, with faster cell phone,smartphones, tablets integrated electronics, multi-CPU architect, faster bandwidth from fiber optic infrastructure will continue to integrate businesses and individuals in globalization for years in the future. The consumption of a product, either electronic gadgets, power tools, food or grains, and intellectual property from the east coast to west coast or United States to China or any other country will affect the supply or demand on a global scale instead of locally from state to state, or neighboring...
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...Total Quality Pioneers Paper xxxxxxxx Quality Management and Productivity MGT/449 xxxxxx xxx Introduction People are confronted with scenarios concerning quality nearly every day. The word or notion of quality can be defined a number of ways. Some think quality should be determined by individual standards and expectations, while others believe quality is an ever changing state. Goetsch and Davis systematically broke down the elements of quality and determined that “quality is a dynamic state associated with products, services, people, processes, and environments that meets or exceeds expectations and helps produce superior value (Goetsch and Davis, 2010 p.5).” Whatever ones interpretation of quality might be, the intent of this paper is to more clearly define quality and its elements as well as describe how the quality pioneer's use of the total quality elements made the pioneers successful. Furthermore, this paper will explain why the elements of quality are useful in today’s environment and offer some insight as to what the future of quality might look like. Quality and its Elements Quality is defined with a variety of distinct explanations. Nevertheless, understanding quality is the key. End use consumers that are businesses explain quality unmistakably through the use of standards, specifications, and other measurable features. For instance, an individual in search of a new automobile will make his or her final purchase decision based on the quality...
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...Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet Boy Lüthje Institute of Social Research Johann Wolfgang Goethe-Universität Senckenberganlage 26 60325 Frankfurt Germany E-mail: luethje@soz.uni-frankfurt.de Submitted for publication to Industry and Innovation – special issue on “Global Production Networks, Information Technology and Local Capabilities”, coordinated by Linsu Kim and Dieter Ernst Comments welcome, please do not quote December 2001 2 The role of information technology for production networks in developing countries cannot be assessed without an analysis of the profound changes in the productive structure of global capitalism. In contrast to the general perception of the “informational economy” (Carnoy e.a. 1993, Castells 1996) as service- or science-based, it has to be stressed that in the "new economy" manufacturing continues to matter (Cohen/Zysman 1987). In the electronics industry, a new model of outsourced manufacturing has emerged as a centerpiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production closely linked to the emergence of the “Wintelist” (Borrus/Zysman 1997 model of competition and the rise of “fabless” product design companies in key sectors of the information technology (IT) industry. Our analysis of electronics contract manufacturing explores three interrelated...
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...Trends in manufacturing to 2020 A foresighting discussion paper Future Manufacturing Industry Innovation Council i Date: 30 September 2011 For more information, or to comment on the paper, please contact: Manager Future Manufacturing Department of Innovation, Industry, Science and Research GPO Box 9839 Canberra ACT 2601 Phone: (02) 6213 6000 Facsimile: (02) 6213 7000 Email: Futuremanufacturing@innovation.gov.au ii Future Manufacturing Council discussion paper: Trends in manufacturing to 2020 Table of Contents Executive summary ....................................................................................................................................1 Background.................................................................................................................................................2 Future Manufacturing Council................................................................................................................2 Defining manufacturing...........................................................................................................................2 Profile of Australian manufacturing........................................................................................................4 Trends to 2020 ... and beyond: Issues and opportunities for Australian manufacturing...................12 Terms of trade driving value and volatility of the Australian dollar and structural changes in the economy – an upside...
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...Manufacturing: A brief global look by ??? April 9, 2011 Manufacturing is a key component of any country’s economy and many comparisons have been made between the United States (U.S.) and other countries. Since World War II the U.S. has been the leader of the manufacturing sector due mainly to the fact that the U.S. industrial plants were not devastated by the destruction of war as where most of Europe and Asia. This paper is a team effort and will give a brief look at the state of manufacturing and some of the incentives each government has used to entice the growth of manufacturing within their respective countries. The countries to be examined are the United States, China, Germany and Japan. You hear it on the news, read it in the newspapers and see the results in the stores that manufacturing is dead in the (U.S.); however, if you do a little research you find the U.S. is still the leader in manufacturing production. As Stephen Manning of the Associated Press acknowledged in a rare “just the facts” story in mid-February, the U.S. “by far remains the world’s leading manufacturer,” producing goods valued at a record $1.6 trillion in 2007 — nearly double the $811 billion produced a decade earlier. Indeed, the AP writer noted, “For every $1 of value produced in China’s factories [in 2007], America generated $2.50.” Not bad for a country that doesn’t produce anything anymore. Some other facts about U.S. manufacturing are: •The United States is the world’s...
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...correct patients so that no other competitors steal valued material. This actually makes their products perform better than other competitors. Politically Under Armour needs to promote good and safe work habits. They do not want a negative view like Nike obtained after they were seen utilizing sweatshops to make a deeper profit in the Industry. Even if a few customers find out they are using bad practices, then it shatters the whole reputation and brand image. Socio-cultural and Global Under Armour and other competitors can and have been using a global image to win the customers over. It is very important that Under Armour utilizes the global image of their quality product, for instance, showing their products on a global scale such as providing gear to the NFL and MLB. People are likely to wear what the professionals wear because they want to be like them. It also utilizes product placement in movies, TV shows, and video games that places their product on a global scale. It can also reach a global scale by endorsements made with worldwide know people, such as people participating...
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...THE UNITED STATES’ MANUFACTURING RESURGENCE Is it possible? There are many internal and external factors that have affected the United States’ (U.S.) economy since 2001. However, the industry of U.S. has been a turning point in development of the country's economy. These forces are very essential when a firm or an industry participates in tough competition which can easily lead manufacturing units to a resurgence within the U.S. Some of the well-known forces at work are as follows. Regular Injection: Regular injection is the investment the U.S. must use to generate more productivity to create more revenue. This force will affect an industry or manufacturing unit if the organization uses the proper strategies to include having high quality products, services and executing the best marketing plan. In the case of leading an industry, one must also invest more and update manufacturing strategies regularly that will be key to creating a high product demand among customers. Supportive Business Planning & Marketing: Business planning is the first step for every organization, especially for a firm that is facing challenging competition and has added threats of losing its position within the market. Companies have to design and apply only the business strategies that are welcoming to the marketing department and manufacturing staff. Now, manufacturing units within the U.S. have their different strategies and business plans for normal and competitive situations. For example;...
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...CHAPTER 2 OPERATION STRATEGIES IN A GLOBAL ECONOMY INTRODUCTION In order for today’s companies to survive in the global economy condition, the companies have to set the strategies in their daily operations. TODAY’S GLOBAL BUSINESS CONDITION There are six factors that affect today’s global business condition and therefore had major impacts on the Operation Management: 1. Reality of global competition 2. Quality, customer service and cost challenges 3. Rapid expansion of advanced technologies 4. Continued growth of the service sector 5. Scarcity of operation resources 6. Social-responsibility issues REALITY OF GLOBAL COMPETITION Changing Nature of World Business Mostly every country in this world today is not only doing the internal domestic trading, but the scope of business has expanded to overseas. One particular country can export their products to overseas, and it can also import the products from other countries. International Companies Many of the international companies, whose operations span the globe as they buy, produce and sell in world markets. Strategic Alliances and Production Sharing Strategic Alliances are joint cooperations among international companies to exploit global business opportunities. Ex: General Motors Corp has created a strategic alliance with KIA Motor in order for them to sell their cars in South Korea. Production sharing, means that a product may be designed and financed by one country, raw materials...
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...to boost the domestic manufacturing industry and attract foreign investors to invest into the Indian economy. The intention is to revive manufacturing businesses and emphasizing key sectors in India and to address the growing concerns that most entrepreneurs are moving out of the country due to its low rank in ease of doing business ratings. Current scenario: The “Make in India” initiative is based on four pillars, which have been identified to give boost to entrepreneurship in India, not only in manufacturing but also other sectors. The four pillars are: * ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor to promote entrepreneurship. * Government intends to develop industrial corridors and smart cities, create world class infrastructure with state-of-the-art technology and high-speed communication. * FDI has been opened up for new sectors like Defense production, Insurance, Medical Devices, and Construction and Railway infrastructure in a big way. * In order to partner with industry in economic development of the country Government shall act as a facilitator and not a regulator. Manufacturing currently contributes just over 15% to the national GDP. The aim of this campaign is to grow this to a 25% contribution as seen with other developing nations of Asia. In the process, the government expects to generate jobs, attract much foreign direct investment, and transform India into a manufacturing hub preferred around...
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...UK manufacturing has been in relative decline since the 1960s. Manufacturing as a share of real GDP has fallen from 30% in 1970 to 12% in 2010. This essay answer looks at the reasons why, and how significant government policies are as a cause. Manufacturing plays a crucial role in the competitiveness of the UK economy. Despite this, for far too long government policy has neglected manufacturing. During this period of neglect British manufacturing firms have repositioned themselves away from price-based competition more towards forms of non-price based competitiveness. The recent re-shoring of manufacturing to the UK is the start of a much needed trend. The University of Birmingham is funding a two year research project entitled ‘Regeneration Economies: Transforming People, Places and Production’. This project is exploring new policy solutions that will support British manufacturing. There is a need to develop a much better understanding of regional and national economies. High value manufacturing firms no longer sell products, but many solutions combine manufactured products with embedded services. Thus, a manufacturing policy must be simultaneously a service policy. There is a need to encourage universities and colleges to provide courses that blend technical training with an understanding of services, this is where the government comes in, by making these changes to education The Regeneration Economies project is also exploring major developments in engineering that have the...
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...suicide But no company had been in China longer than Mattel; the original Barbie had been created there in 1959 Mattel had a depth of experience and a longevity of relationships which should have prevented it. In the end it was those relationships and that longevity which may have contributed to the product safety failures. Global Supply Chains and Risk Toys were based on a global supply chain which was highly sensitive to petrochemical (plastics) and labor input costs, environmental and human rights sensitivities to socially responsible and sustainable business practices, transportation and logistic disruptions, border crossings, cost and time to market – all of which added to risk. Mattel had established its Global Manufacturing Principles in 1997, in which it established principles and practices for all companies and sites which manufactured Mattel products, either company owned or licensed manufacturing • First Chinese Signal – The crisis had actually begun in June when U.S. toy maker RC2 recalled 1.5 million Thomas the Tank Engine products made in Guangdong, the Chinese province adjacent to Hong Kong and long the center for contract manufacturing by Western firms. • Mattel followed with a series of three recalls in less than one month – The first recall of 1.5 million toys of 83 different models was on August 2, most of which were produced by Lee Der Industrial, a Mattel supplier for 15 years. – The toys contained high levels of lead paint, a chemical banned many...
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...THE IMPORTANCE AND CHALLENGES OF MANUFACTURING IN MALAYSIA Recently, manufacturing industries in Malaysia grow very rapidly if compared to previous decades. With the rapidly grow of manufacturing industries, the government has to play its role in order to ensure every aspect of current trading policies and regulatory to be obeyed. Other than that, this will ensure that the current trading and manufacturing environment in Malaysia to be peaceful yet globally competitive. In this report, a number of importance and challenges faced by manufacturing sector in Malaysia will be focused on. The scope of this report only covers the situation in Malaysia manufacturing environment and at the same time, it will explain some benefits that our nation can get from the cooperation with developed countries such as Australia and Japan. Manufacturing Sector in Malaysia and its Importance To start with, manufacturing sector in Malaysia contributes almost 80% of overall country’s export and besides, Malaysia also known as the 17th largest exporting nation in the world [1]. For that reason, Malaysia’s government has to work hard in order to maintain, preserve and enhance our manufacturing sector. From [1], it is stated that products manufactured in Malaysia are accepted in developed countries such as US, EU and Japan. This shows that our manufacturing sector already achieved a level that can be proud of. Due to exporting her product to other countries, Malaysia has to obey some...
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