Globalization of production talks about economic globalisation, it is a means of integrating national economy into international economy via capital flow, trade, foreign direct investment etc.
One of the advantage of Globalization of production is that it helps to raise incentives for production in regions with low cost.
Explanation: Globalization of production is the acquisition of products and services from a specific source from regions around the world to have an advantage in expenditure and quality of production like land, labor, and capital.
In this case, Jerry made a change in the country that was making the component for him from the USA to China which resulted in the globalization of production. This means that despite a product may have the mark of being manufactured in a specific nation, its components may be from distinct locales.
SBU stands for Strategic business unit , it is a profit center whose focus is on the product offering and the market segment. It is usually have a marketing plan which is discrete, marketing campaign and analysis of competition, though it is a part of larger business entity.
So, the private university facing financial problems, they decided to become a profit center. Therefore, this scheme is parallel to SBU which is Strategic business unit.
To understand the new working environment, and the changes in the overall market structure; it is very important to learn new methods and change old habits that is exactly what Lewin change model explains. This model emphasises on the importance of a change as part of a job to cope with the new era of globalisation.
