Changes in the organization, production and distribution

Changes in the organization, production and distribution

1. Multidomestic

   • Centralized Production
     • The entire production occurs within only one nation (or region) and is then exported on the global market.
   • Regional Production
     • Depends more on regional accessibility than on economies of scala.
     • It particularly applies to well-known manufacturing technologies (easy to replicate) and products having high distribution costs

2. Globaly integrated

   • Vertical transnational integrtion
     • This global production network is another variant of specialization.
     • Raw materials are extracted from locations where they are the most available and accessible.
   • Regional Specialization
     • This global production network involves a spatial division of the production based on comparative advantages.