Sustainable Need for Economies of Scale
Breadcrumbs: The Future of Ubiquitous Computing --> The Driving Forces: Economical Forces --> Economies of scale
Description
Economies of scale characterizes a production process in which an increase in the number of units purchased causes a decrease in the average cost of each unit.
More information: Economies of scale in Wikipedia
Enablers
- WTO and falling trade barriers
- Decreasing transport costs
- Investment incentives attracting investors to low-cost-labour countries
- Advanced communication technologies - easier management of a transnational corporation
- Growing demand for products
- Competition pressuring lower prices
Inhibitors
- Cultural differences/conflicts
- Anti-globalization forces
Paradigms
Experts
Timing
19th century: Industrial revolution in Europe
1914: Fordism - Henry Ford's combination of highly efficient factories, highly paid workers, and low prices revolutionized manufacturing