Assessment of Performance Measurement in - St Clements University

other parts of the world. To the global firms in those countries
possessing a comparative advantage is crucial to its world position.
Production economies of scale: If there are economies of scale in
production (or providing service) that extend beyond the size of major
national markets the firm can potentially achieve a cost advantage
through centralized production and global competition. Advantages of
vertical integration are the key to achieving global production economic
because the efficient scale of the vertically integrated system is greater
than the size of national markets. Achieving production economies
necessarily implies movement of exports among countries.
Global experience in technologies subject to significant cost declines due
to proprietary experience. The ability to sell similar product varieties in
many national markets can bring benefits. Cumulative volume per
model is greater if the model is sold in many national markets, leading
to a cost advantage for the global competitor. Global competition can
allow faster learning, even if the learning curve flattens at cumulative
volumes achievable eventually by competing in an individual geographic
market. Since a company can potentially gain experience by sharing
improvements among plants. A cost advantage from global competition
potentially can be gained even if production is not centralized but takes
place in each national market.
Logistical Economies of scales: If an international logistics system
inherently involves fixed costs that can be spread by supplying many
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