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Global supply chain and its dimensions

Apart from different modes of entry available for firms to get advantages from globalization and to move across borders to expand their market, other advantages may be gained through developing global supply chains. 'The production of any good or service can be conceived as a production chain - that is, as a transactionally linked sequence of functions in which each stage adds value to the process of production of goods and services.' (Dicken, 2003)

The firms try to differentiate their value chain in order to add more competences by using the advantages of each production chain requirement in different part of the world. However, build a global value chain might make it fragmented while the control and management of a global network is more difficult. From Dicken's point of view there are three important dimensions in production networks:

First is 'governance' which means how they are coordinated and regulated. In the case which varying combinations and interrelationships of different kind of companies and firms might perform in a production network, As Dicken says, 'the market' is the main organizer of external transactions, in contrast with the case which the entire network operated with a single firm and internal organizational structure governs transactions. (Dicken, 2003)

The second important dimension in production network is 'spatiality' and 'how they are conFigured geographically'. By increasing the emergence of global production network, network organizing is changing from 'geographically concentrated' to 'geographically dispersed'.

The third issue is 'territorial embeddedness' - the extent to which they are connected in to particular bounded political, institutional and social setting'. (Dicken, 2003) information technology and other new technologies have made 'space' and 'distances' meaningless. Most types of capitals are mobile and all of them can easily move from one place to another. However transportation and communication technology has developed as well, capital does moves within spaceless world. Place is still an important issue, as firms are highly affected by the cultural, socio-political and institutional context of the territorial they are embedded. Therefore multinational firms try to take advantages of differences within regulations and socials in various places while, bringing different state with different regimes in count within a production network makes the situation more complex to control and to take benefits from.

Since 1999 and strongly growth of globalization, the same as other important and effective phenomena, globalization has a positive view wave that strongly recommend it and a negative wave against it which moves from developing country to developed countries during these years. Arguments about globalization success or failures do not have any satisfactory result, while globalization can be observe and discussed to understand both negative and positive sides of it.

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