Four major location strategies for Global Production Networks

Economies of scale can be classified into two main types:

arising from within the company;

arising from extraneous factors such as industry size.

the act of choosing between manufacturing a product in house or purchasing it from an external supplier

involves the marketing of goods and services outside the organization`s home country.

This arises from the effect that exchange rate fluctuations have on a company’s obligations to make or receive payments denominated in foreign currency

This exposure arises from the effect of currency fluctuations on a company’s consolidated financial statements

It is caused by the effect of unexpected currency fluctuations on a company’s future cash flows and market value and is long-term in nature.

which involves the preparation and planning, is the most important step in negotiation.

involves a face-to-face interaction, methods of persuasion, and the use of tactics.

relates to concessions, compromises, evaluating the agreement, and following-up.

is most commonly described as a partnership or a joint venture.

refers to the coming together of two or more companies to form a new entity or one or more entities merging into other entity.

refer to processes in which one company buys the other company.

it refers to a legal entity that is formed between two or more parties to undertake an economic activity together.

Businesses and customers around the world can now communicate easily regardless of location thanks to the use of technologies such as online chat

technologies like cloud computing and web conferencing make it possible to hire employees who live in other countries.

developments such as 3D printing and robotics have transformed how companies around the world manufacture products.

software can help companies strategically source their goods internationally for the best value and view real-time inventory reports.

These systems make it easier to handle transactions in different currencies

this software helps with tracking marketing analytics to understand customers’ impressions of products and services