Global assembly lines

Definition

Global assembly lines are production processes where different components of a product are manufactured in various countries around the world before being assembled into a final product. This system capitalizes on the economic efficiencies of geographic specialization and lower labor costs in certain regions.

Related terms

Outsourcing:

The business practice of hiring external firms to perform tasks, handle operations or provide services that are either usually executed or had previously been done by the company's own employees.

Free Trade Agreements: These are treaties between two or more nations agreeing to reduce barriers to imports and exports among them, fostering increased trade and economic integration.

Multinational Corporations (MNCs): Companies that operate in several countries around the world, managing production or delivering services in more than one country outside their home country