Consequences on the organization of production
It requires
investments,
and
therefore “consumes”
resources which are rare
or
expensive and
better
used elsewhere.
Production presents
characteristics that push
companies to subcontract:
It requires a large
quantity of workers,
especially low-skilled
workers
Never in all of history have
transport costs been so cheap
It is this extreme productivity
of the transport industry that
makes what
we
call globalisation
possible.
Where activities are performed becomes less and less important.
It is now possible to source industrial and agricultural raw materials on the
other side of the world and transfer production activities over there too.