company that used to be based solely in the United States now has factories in the United States plus Mexico, Guatemala, and Indonesia. Which key dynamic of globalization is at work in this example?

Question

Nehemiah Cherry

Business

13 February, 19:21

company that used to be based solely in the United States now has factories in the United States plus Mexico, Guatemala, and Indonesia. Which key dynamic of globalization is at work in this example?

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Answers (1)

Know the Answer?

Trace Hansen · Answer 1

The correct answer is Flexible accumulation.

Explanation:

In flexible accumulation, it is believed that fundamental changes in the international economy, especially in the early 1970s, led to mass production changing with a new "modus operandi" known as flexible specialization. Factors such as the 1973 oil crisis, increased competition with foreign markets (especially those in Southeast Asia) and factors such as globalization, the end of the postwar period, and increased privatization made the old mass production system incompetent

Instead of producing generic goods, companies now find it more profitable to produce various product lines aimed at different groups of consumers, appealing to their sense of taste and fashion. Instead of researching mass production of a single product with huge amounts of money, companies now need to build an intelligent system of work and machines that are flexible and can respond quickly to market vagaries.