Decentralized Manufacturing the Global Economy Essay

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A concentrated manufacturing strategy, however, will incur far higher distribution costs due to the very same factors that create a cost savings in a decentralizes strategy. There will also be a greater negative impact on the environment from the increased amount of shipping that will necessarily take place in order for the companies products to make their way into all regions of the global market. The increased profitability that is expected from this strategy will likely make it possible to overcome these barriers and even to offset carbon emissions through cap and trade, though, making it more ideal for the company. Tariffs and trade barriers are also likely to be relatively low for this product, as the microprocessors the company manufactures are utilizes in many different technologies necessary for the running of modern businesses -- preventing or limiting entry of microprocessors into individual regions or countries would have an inhibiting effect on the economies of those countries/regions.

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Shipping costs would also likely be minimal as the products themselves are quite small and lightweight and many thousands of units could be shipped to major distribution centers around the world and from thence broken up into smaller shipments with this process handled almost entirely by third party logistics providers.

Though there are some risks and concerns associated with a concentrated manufacturing strategy, the expected benefits of this strategy greatly outweigh these risks for the company identified. This of course would not hold true for all companies in all industries but it certainly makes seems to make sense….....

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"Decentralized Manufacturing The Global Economy" (2010, October 26) Retrieved May 19, 2024, from
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"Decentralized Manufacturing The Global Economy" 26 October 2010. Web.19 May. 2024. <
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"Decentralized Manufacturing The Global Economy", 26 October 2010, Accessed.19 May. 2024,
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