Global Economy
Common to buy clothing anywhere in US which has
a tag labeled, Made in Malaysia, China or Sri
Lanka
Simple observation reminds us that our
consumption of goods has a strong international
character
Increasingly true to speak not only of national
economies but a larger, highly inter-connected and
interdependent- GLOBAL ECONOMY
Before discussing basic mechanisms of
industrialization and economic change within Third
World, important to look at the broader global
industrial environment within which these nations
are forced to compete
Some argue that continuing OPEC escalation of oil prices through limited
production is root cause
Basic Enterprise
Ta
rif
1
Nation
Center
er
h
Ot
tio
a
N
Factory
Distribution center
Multinational Corporation
Representative
Production Unit
se
ou
eh
ar
W
FACTORY
Assembly Line
Moving storage
units
Moving storage
units
Monopoly
rs
it to
pe
m
Co
Sales
Inno
Idea
Promotion
Research and
development
Stage 1
vati
ng f
irm
First competitors
Mass production
Decline of
production
Growth
Maturity
Decline
Stage 2
Stage 3
Stage 4
Evolution of basic
Cellular phones are an
example of a product
which is especially
applicable to the notion
of the product life cycle
phone to color
enhancement to camera
and email device
Hinterland
Space
Time
London
Los Angeles
Tokyo
New York
Hong Kong
Singapore
Parts shipped from places as diverse as Wales and Mexicobut very risky
Greater demand forced KIA to air freight airbags from Swedish company
which makes them in the U.S.