New Trend in Global Production System

Abstract

As it easily guessed there will be no any area which is not affected by globalization and we are facing and experiencing the new effects of globalization day by day. In this context we absolutely sure that production system which can be either global production or international production, is under affect of globalization. For the last two or three decades the world has witnessed important changes in world production in terms of unbundling, rise of outsourcing, offshoring, vertical specialization, and new sourcing strategy of multinational enterprises. Although these changes have not completely changed the pattern of trade, the trade of intermediate goods instead of final goods is a rising phenomenon. This phenomenon, being called as "the fragmentation of production processes and the international dispersion of tasks and activities" by researchers, has been leading to the borderless production systems. So we are now facing the demolishing of borders in production process.