Research should be Global - Results Available to every one and shared by every one.
Knowledge is Universal and have no borders.
Production should be as much local as possible
Why Research should be Global
- Global knowledge should be available to everyone, not just to the small group of people
- Many research topics are cross disciplines and beyond international borders. Can avoid duplication.
- Many research and development projects, require huge resources (material, manpower etc..), too much for any one country.
- International collaborations help to think more broadly. Can gather skills and knowledge from people working in similar areas world-wide
- Can build internationally competitive teams and research groups, and also gain a greater audience and market for their research.
- Network of contacts is potentially the best source of international opportunities. Adopting a global outlook is also highly beneficial for research careers. Make connections and seize opportunities
- One need to be willing and able to travel and live in a foreign culture for extended periods. One should cope with diversity
- International codes of conduct are important.
Traditionally, Production was local, importing only goods and raw materials not available locally. Preferance is for local production.
- Small-scale local production helps to eliminate the waste of unneeded products made to adhere to overseas minimums, reduce emissions and energy usage. Controlling the development of the product first-hand enables greater quality control and helps to reduce waste and overproduction, ensuring the item remains sellable.
- Sourcing your products and materials locally has benefits in all three areas.
- Planet: Buying from local vendors and manufacturers cuts down on fuel emissions because it takes less fuel to transport goods than it would to transport them across the country or across continents.
- Eating local means more money stays within your community. Every dollar spent generates twice as much income for the local economy.
- Local produce is fresher and tastes better because it is usually sold within 24 hours of being picked. Some local producers also use organic or higher quality materials. This is one of the main reasons locally grown food and goods are generally viewed as being of better quality.
- Supports the Local Economy. Money is kept local and makes the community wealthier.
- Better Community Health and Safer Food
- Reduces Use of Fossil Fuels in transporting over large distances
- Better Economic Use of Land, instead of building huge structure and parking
Why Production became global
- Farmers and businesses who produce in smaller quantities typically incur higher costs associated with growing, producing and distributing their goods.
- Typically find a smaller selection of goods. For example, local foods can only be grown during certain times of the year. Local food also tends to spoil faster because it isn’t typically treated with preservatives. A lot of local farmers report it is more difficult for them to sell their produce based on looks.
- As a consumer, there can be a lot less choice. You may also find there is a waiting period to get the item you want, or it may not be available at all locally.
Globalisation is a process by which countries of the world benefit in several ways. Three main benefits or advantages derived from globalisation are in countries being able to procure the best and most efficient technologies for their production processes, being able to develop markets for their products and services across the globe and outsourcing jobs to countries where costs are low and the manpower cheaper than in their own country. Leveraging on expertise and economic advantages, countries that have globalised are today economically ahead of those that have not opened up their economy.
A well planned production function will lead to good quality products, higher rate of production and lower cost
According to data published by the United Nations Statistics Division, China accounted for 28 percent of global manufacturing output in 2018.
One of the main advantages of opening a production facility in another country is the reduction in manufacturing costs. Labor is often one of the biggest manufacturing costs for rich countries. Rich countries can invest in less developed countries. If volume is large, it will justify developing and using advanced technologies and automation.
Issues in Global Production
Outsourcing is a controversial issue.
- Stability Issues such as governmental policies, political instability, revolution or terrorism/organized crime. Many developing countries have fairly unstable or volatile political landscapes that can change quickly.
- When a new government takes over, it might make it harder to do business in that country.
Outsourcing your production can lead to increased management expenses
- Despite dramatic advances in information and transportation technology, a factory located thousands of miles away still poses huge logistical challenges.
- When you bring in something form abroad to sell in the local market, you are exposed to currency rate fluctuations.
Some of the discussion points during APEC lunch time gossip