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Global Manufacturing

Definition

Global manufacturing refers to the production of goods on a worldwide scale, often involving multiple countries in different stages of the manufacturing process.

Analogy

Think of global manufacturing like a giant, international assembly line. Just as an assembly line in a car factory has different stations where various parts are added to build the final product, global manufacturing involves different countries each contributing their own part (like raw materials, labor, or technology) to create finished goods.

Related terms

Outsourcing: This is when a company contracts out certain tasks or services to external firms or individuals. In terms of global manufacturing, this could mean having parts made in one country and assembled in another.

Supply Chain: This term refers to the network of individuals, organizations, resources and processes involved in creating and selling a product. From sourcing raw materials to delivering the final product to consumers - it's all part of the supply chain.

Trade Barriers: These are restrictions that governments put on international trade. They can include things like tariffs (taxes on imports), quotas (limits on how much can be imported), and embargoes (complete bans on trade with certain countries).