Difference between revisions of "The global production"

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==Description:==
==Description:==
Rapid growth of internet technology has stimulated the idea of 'Global Village'. A global village can be understood as inter-connectedness of world's entities. The entites may be in a form of people, organization, state, or even devices. As we all might have seen, internet nowadays has played important role on underpinning processes and activities in almost all aspects of human life. Communication, media, and education, for intances, has been benefited by the advance of internet in a sense that internet provides new ways of communicating, informing, and educating that cease 'time' and vanish 'space'.
The global and national economies, as well as individual industries and firms, have undergone a tremendous amount of restructuring in the past several decades. Until the 1970s, the global economy was primarily composed of national companies operating mainly within their borders. The system was characterized by shallow integration versus the deeper integration of today, in which global production systems distribute production across continents and the globe. Linkages across firms and countries have strengthened as trade has greatly expanded and production has moved southward. No longer does a single firm control all of a company’s activities (e.g., General Motors in the 1960s), but rather the system operates from a network-centric perspective and a firm is disconnected from the customers it serves – for instance, Nike now has 900 suppliers and 650,000 workers spread over 50 countries. But while there has been a diffusion of production, the control has solidified on the retail side as a result of consolidation among top-tier firms and a proliferation among potential suppliers.
 
As an aspect of Economy Globalization, global production act an important role in stimulating the development of glbal economy, as well as facilitate the global communication and integration.


==Enablers:==
==Enablers:==
* Substantive R&D cost demands mass production and global market<br>
* Substantive R&D cost demands mass production and global market<br>
* The more and more affordable price of computer<br>
* reduce production cost<br>
* The advance of network technology: Wireless Network<br>
* obtain advanced technology and other technical resource<br>
* Better education level, especially in the 3rd world countries
* ocuppy local market
 
 
1)巨额研发费用要求大规模生产和全球市场。90年代,制造业中重要新产品的研发费用增加了两倍,必须有全球市场和制造体系分摊研发成本。
 
    2)降低生产成本。中国人工成本仅为美日的二十分之一,台湾的十分之一,韩国的八分之一。
 
    3)获取技术和其它专项资产。巨额研发投资使大型企业也难以承担,海外投资可以寻求有用的技术资源,分享双方的技术能力。    4)占领当地市场。有些国家对国内市场保护很严,对其出口困难,到当地投资、制造和销售,成为一种选择。


==Inhibitors:==
==Inhibitors:==
* Internet security issues: its vulnerabilities to cybercrime
* While production has expanded across the globe, global governance has not been able to match the pace.
* The protection to local national industry hinder global production.
* The core technologies are still concentrated in developed countries.


==Paradigms:==
==Paradigms:==
Emerging paradigm associated with the advance of internet:
Emerging paradigms associated with the global production:
* e-government
* The agricultural trade in fresh fruits and vegetables
* e-commerce
World agricultural trade has increased by over 6% from 1961 to 2001 (because of increased demand from the US, EU, and Japan and increased supply from across Latin America and Sub-Saharan Africa). The value of produce exports has also simultaneously increased by 55% ($4.5 billion).
* e-business
 
* e-learning (Distance learning)
* Outsourcing of software to India
* Semantic web
In the software industry, India has positioned itself as the developing country leader in customized software for the American market. Admittedly this dominant position has been the result of government policy that allowed foreign service providers in the country, development of an information technology infrastructure, and good rules governing venture capital.


==Experts:==
==Experts:==
* Marshal McLuhan
* GVU's WWW survey
* IDC
* Nua Ltd.


==Timing:==
==Timing:==
In a www survey conducted by GUV in 1995, internet connection speed at 14 kb/s had the highest percentage with 33.7%, 32.72%, 22.95% in general part of the world, U.S, and europe respectively. In other words, the most common connection speed is 14 Kb/sec (33.70%) followed by 28 Kb/sec (26.63%). In year 1998, the same survey resulted in 31.4% for connection speed at 56 Kb/sec. This fact however has shown how internet technology has grown rapidly within three years.
<p>
In terms of internet usage, internet user has grown from 16 million (0.39% of world population) in December 1995 to 580.78 million (9.75% of world population) in May 2002. Those data are based upon research from Nua Ltd. and IDC respectively. This means internet user had grown 35.3% in seven years from 1995 to 2002. Therefore, in year 2020 we might expect internet will overwhelmingly used by people and become a backbone of human's technology civilization.


==Web Resources:==
==Web Resources:==

Latest revision as of 23:15, 16 March 2005

Description:

The global and national economies, as well as individual industries and firms, have undergone a tremendous amount of restructuring in the past several decades. Until the 1970s, the global economy was primarily composed of national companies operating mainly within their borders. The system was characterized by shallow integration versus the deeper integration of today, in which global production systems distribute production across continents and the globe. Linkages across firms and countries have strengthened as trade has greatly expanded and production has moved southward. No longer does a single firm control all of a company’s activities (e.g., General Motors in the 1960s), but rather the system operates from a network-centric perspective and a firm is disconnected from the customers it serves – for instance, Nike now has 900 suppliers and 650,000 workers spread over 50 countries. But while there has been a diffusion of production, the control has solidified on the retail side as a result of consolidation among top-tier firms and a proliferation among potential suppliers.

As an aspect of Economy Globalization, global production act an important role in stimulating the development of glbal economy, as well as facilitate the global communication and integration.

Enablers:

  • Substantive R&D cost demands mass production and global market
  • reduce production cost
  • obtain advanced technology and other technical resource
  • ocuppy local market

Inhibitors:

  • While production has expanded across the globe, global governance has not been able to match the pace.
  • The protection to local national industry hinder global production.
  • The core technologies are still concentrated in developed countries.

Paradigms:

Emerging paradigms associated with the global production:

  • The agricultural trade in fresh fruits and vegetables

World agricultural trade has increased by over 6% from 1961 to 2001 (because of increased demand from the US, EU, and Japan and increased supply from across Latin America and Sub-Saharan Africa). The value of produce exports has also simultaneously increased by 55% ($4.5 billion).

  • Outsourcing of software to India

In the software industry, India has positioned itself as the developing country leader in customized software for the American market. Admittedly this dominant position has been the result of government policy that allowed foreign service providers in the country, development of an information technology infrastructure, and good rules governing venture capital.

Experts:

Timing:

Web Resources:




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