Manufacturing Outside the U.S.
Chile’s Global Operations Management
MGTU - 400
GLOBAL ENVIRONMENT OF BUSINESS
WEEK 7 – ASSIGNMENT 7
December 9, 2012
Chile’s Global Operations Management
With the rapid advancement of international economic activities, especially from the greatest contributor such as multinational companies in local economies, it has become increasingly important for enterprises to analyze the industrialization process in other countries as well as relevant changes that influence how business operate outside their homeland. Many advantages have been attributed to the globalization movement of many countries. In a country like Chile these advantages could be seen in the constant decrease of their unemployment and poverty rates, the increase of GDP rates, the economic status compared to its neighbor countries, the increase in educational standards that allowed technology to flourish, and many more benefits. In this paper I will analyze how these benefits paired with other factors like political and cultural conditions positions Chile in a good place to be the country of choice for possible manufacturing operations outside the U.S.
When evaluating Chile as a future host for creating manufacturing operations outside the U.S. it easy to find many positive advantages that the country has created in order to attract businesses from outside its geographical borders. Companies need to consider many factors that are relevant to the business by gathering information through intellectual talent or otherwise by creating a network of contacts within their industry. These factors are called externalities and “can play an important role in deciding where to locate manufacturing activities” (Hill, 2011). Externalities that a company should consider when looking to outsource their productions are: political, economics, and cultural conditions. Chile has been successful in creating “a global web of value creation activities” (Hill, 2011).
When outsourcing manufacturing operations
MGTU - 400
GLOBAL ENVIRONMENT OF BUSINESS
WEEK 7 – ASSIGNMENT 7
December 9, 2012
Chile’s Global Operations Management
With the rapid advancement of international economic activities, especially from the greatest contributor such as multinational companies in local economies, it has become increasingly important for enterprises to analyze the industrialization process in other countries as well as relevant changes that influence how business operate outside their homeland. Many advantages have been attributed to the globalization movement of many countries. In a country like Chile these advantages could be seen in the constant decrease of their unemployment and poverty rates, the increase of GDP rates, the economic status compared to its neighbor countries, the increase in educational standards that allowed technology to flourish, and many more benefits. In this paper I will analyze how these benefits paired with other factors like political and cultural conditions positions Chile in a good place to be the country of choice for possible manufacturing operations outside the U.S.
When evaluating Chile as a future host for creating manufacturing operations outside the U.S. it easy to find many positive advantages that the country has created in order to attract businesses from outside its geographical borders. Companies need to consider many factors that are relevant to the business by gathering information through intellectual talent or otherwise by creating a network of contacts within their industry. These factors are called externalities and “can play an important role in deciding where to locate manufacturing activities” (Hill, 2011). Externalities that a company should consider when looking to outsource their productions are: political, economics, and cultural conditions. Chile has been successful in creating “a global web of value creation activities” (Hill, 2011).
When outsourcing manufacturing operations