What Is Globalization Of Production?


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Nouman Umar answered
The globalization of production means that the world has become the global village and now the producers can get the benefit from the different culture and cheap labors all around the world. Now the companies move to other parts of the world where they get the product at lost cost. There is another reason for this is this is happened due to the natural resources the countries have and how much they facilitate the foreign investment to come to their counties and invest their money in those countries. By keeping various action the company can reduce over cost of the production, can produce innovative produce and can compete in the market in the better way.

Now the whole scenario has changed the companies who are making any thing they are producing thing in different countries like we can take the example of the Honda who is making the spare parts in china, assembling the products in Pakistan and designing the engine in the Japan so the production is distributed into three common places. This term is more widely used as the globalizations of products the things which need high technological knowledge are given to those counties where the people are highly skilled.

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