Local vs Global Production
1. What is Local Production?
Local production is the most simple market linkage pattern in which products produced by local people are sold in local markets. Some producers collect products directly from the farm and sell them in local markets or in the streets. Sometimes farmers directly sell their products. Others sell products after processing their fresh produce.
2. What is Global Production?
Global Production Network (GPN) is a concept in developmental manufacture or Manufacturer Company that spread their products throughout the world. This network interconnects the nodes in national and extends spatially across the national boundaries. This framework combines the insights from the global value chain analysis and many. GPN provides a relational framework that aims to encompass all the relevant actors in the production system.
3. Advantage of Local Production :
Improve Publication Relations:
As local production in bounded inside the locality, it increases healthy relationships. As the number of people is limited here, so people get more interconnected and they become more familiar with each other that gives a helpful neighborhood.
Improve Speed of market:
As the market is limited and the network is limited so getting product quite easy then GPN. The product that is needed for a certain area, through local products that necessity can be provided easily.
As here less number of products are needed so for farmers, shopkeepers, cloth merchant etc can control easily the productivity. Many people are needed for GPN as it has wide network but for local production it is a relief.
Maintaining Ethical Integrity:
As network is not so wide like GPN so the wrong and right process can be conducted easily. Integrity is become a main character for here.
Accurate Budget Forecasting:
A number of products is less in number so not big budget is needed. For starting
Local productivity one can easily take bank loan but for GPN a big amount of investment is needed.
A True Partnership: As it’s a small business type, honesty is suitable here. In GPN sometime there is a chance for happening a scam.
4. The Advantage Global Production:
- Economics of scale production and distribution
- Lower marketing costs
- Power and scope
- Consistency in brand image
- Ability to leverage ideas quickly and efficiency
- Uniformity of marketing practices
- Helps to establish relationships outside of the ‘political arena’
- Helps to encourage ancillary Industries to be set u to cater to the needs of the global player
- Benefits of e-marketing over traditional marketing.
5. Disadvantage of Local Production:
a ) Rarely cost-competitive:
With few expectations, costs for domestic manufacturing are significantly higher than costs for international manufacturing. This is because U.S. labor laws mandate minimum wage for workers and cleaner, safer facilities.
b) Limited production:
U.S. manufactures tend to have more limited production capabilities than their international counterparts and often are not set up to produce high volume orders.
6. Global Production disadvantage:
A) Cultural Divides:
Differences in cultural norms maybe difficult to navigate and language barriers may complicated effective communication
B) Limited oversight:
Without hiring a third party or making a trip to the facilities, there’s no way to keep eye on how the facilities are run or to witness the production of your product.
C) Negative press:
Depending on the size of your business, choosing to manufacture your product overseas may generate negative press and adversely affect on your company’s reputation and sales.
D) Increased shipping cost:
When products intended for local productivity are manufactured overseas, shipping costs rapidly mount to transport them to market.
- E) Through experienced overseas manufactures are expert in helping their domestic customer mitigate these costs, customs are an important part of the equation of choosing whether to have a product manufactured at home or overseas.
- F) Less secure intellectual property rights: without the stringent protection of U.S. intellectual property laws, it’s more likely (through still uncommon) that your idea might be stolen.
So now what is the best way, doing local productivity or global productivity network (GPN). I will say both. Actually both should work in parallel but did not hamper each other’s work. For local people it is not possible to connect towards GPN as the financial condition is not so same. On the other hand people who do not live in a static place or not have enough time to collect local product needed GPN network badly. Local producer looks up for a particular area’s criteria not in generalized condition whereas GPN is versatile, takes care for whole of the world.
Now we can’t take off any of these two types though for many people local productivity is a old concept, but still many people earn through this way and number of people are more in job due to this old concept. Our nature remains in healthy condition because local producers use organic process more than GPN to produce things.
So we can’t take off any ideas. Only we can modernize local products and can increase theirs network and we can make GPN more nature friendly thus pollution can reduce.