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Running Head: GLOBALIZATION Clover Machines

GLOBALIZATION

Clover Machines (case study)


Katia Almeida Brandman University FINU 615

GLOBALIZATION

Introduction Globalization is responsible for several changes in the world, influencing political and social relationships, technological development, methods of work etc. The purpose of this paper is to show the influence of globalization on manufacture. One of the changes brought by globalization is the fact that robots are being more and more utilized in the production process. These machines are programmed to perform rapid, standardized and effective movements, therefore increasing production efficiency. Analysis According to data released by the United Nations (UN), approximately eighty five thousand robots are introduced annually in industries worldwide. It is estimated that there are over eight hundred thousand robots performing work that could employ about two million people. This process is driven by several factors, one being the maximization of production: the use of robots can substantially increase production in certain industries. To companies, the use of machinery is more advantageous since not only production efficiency rate is higher but payroll is reduced and therefore profitability is higher. Robots, despite having to go through maintenance, are more beneficial for companies because, unlike workers they do not get sick, do not take vacations, do not get pregnant, do not need rest, do not get paid and do not complain, among other factors. Globalization has created another market that is the resale. The Netherlands is the largest exporter of agricultural products in Europe and the world. The strategy is to import products from countries where these products have little commercial value (mainly China - vegetables) and re-export to countries with large economic power that are willing to pay higher prices for the same products.

GLOBALIZATION

The theory of globalization that would better support Clovers case study is: Product Life Cycle Theory The product life cycle theory (Raymond Vernon, 1966) is attributed to Vernon and others; it relates to competitive advantages arising from innovation. When a nations products are first introduced in global markets, they have a clear competitive advantage because of research and development, innovation, or other advantages. First level The firm-level product cycle theory states that a firm initially produces and sells in its domestic market. Over time, the firm exports in order to enjoy economies of scale and perhaps to overcome stagnation in its domestic markets. Conclusion Globalization is a process of no return, increasingly we live in a global world and each day it becomes more universal. In agricultural terms, strategies should be defined to deal optimally with that fact. It will be possible to grow crops on countries with the best cost/benefit ratio, as climate will not be an issue with the advancement of technology.. Support to agricultural sectors should be of greatest international importance and all efforts should be directed to technological, efficiency, quality and global aspects of agriculture so demand and supply could be equalized across the globe, hopefully in a not distant future.

GLOBALIZATION

Reference: Robin, J. A. (2011). International corporate finance. (1st ed.). Columbus,OH: McGraw-Hill. Friedman, T. L. (2000). The lexus and the olive tree. Farrar, Straus and Giroux. Vernon, R. (1972). The economic Environment in International Business. Prentice Hall.