This section presents the differences of International Business in Fordism and post–Fordism related to concepts of production and logistics. Henry Ford, who was the first to apply the principles of economies of scale and specialisation in the mass production of cars, started the so-called Fordist stage of business globalisation. Serial production of the “Ford T” model, which began in 1913, is a symbol of this stage. At this stage, the main focus was on increasing production efficiency and volumes. This was greatly boosted by export volumes. Export has become the most popular way of doing international business. The scale of export growth of industrialised countries led to the growth of the gross domestic product of these countries. Globally, the differences in the size of the gross domestic product between the leading countries – the US, the UK, France, Germany, Italy, and the rest of the world – began to widen.
Ex. 2‑19 Shih’s “Smile Curve”: The decline of production added value in a post–Fordist society
Keywords: logistics, manufacturing, globalisation, smiling curve
pav. 2‑20 Rodriguez’s distance of production, R&D and distribution
Keywords: logistics, manufacturing, globalisation economic development
Ex. 2‑21 Differences in the principles of international business in the periods of Fordism and post–Fordism
Keywords: logistics, manufacturing, globalisation, Fordism, post-Fordism
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A.1 Theories of international economics
- The origins and genesis of globalisation in different eras
- Evolutions and shift of world economic powers and trade
- Evolution of money as unit of exchange
- The first international companies
- Mobility and communication technologies as key enablers of globalisation
- Industrial revolutions
- Differences of international business in Fordism and post-Fordism
- Questions for Chapter Review
- Chapter Bibliography
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