Are the Environmental Challenges and Ethical Dilemmas Fisher & Paykel Currently Face Outsourcing Manufacturing to a Developing Country Overall Beneficial to Australia?

3914 Words Jun 19th, 2010 16 Pages
Research Essay 3000 words
Globalisation presents significant opportunities and challenges for business around the world. Are the environmental challenges and ethical dilemmas Fisher & Paykel currently face outsourcing manufacturing to a developing country beneficial to Australia?
Globalisation can be described as the intertwining processes of the world. It is not only an economic process, which involves rising communication and integration of all countries’ economies through the growth in international trade and investment, but also the rapid cultural, social, technological and industrial exchange between nations (IYP, 2002, p. 11). Globalisation presents significant opportunities, as well as many challenges, for business around the
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The term sometimes also refers to the movement of people (labour) and knowledge/IP Intellectual Property (technology) across international borders’ (IMF Staff, 2002). Today commerce and financial services are far more developed than they once were, resulting in advantages in the integration of financial markets, made possible by modern electronic communication – internet, mobile phones, etc. Globalisation speaks of the process change and the factors driving that change. There are key driving forces that often cause companies to globalise their operations, those being, political and technological forces, market and cost concerns, and competition (Ball, McCulloch, Geringer, Minor, & McNett, 2008, pp. 13-15). Throughout this essay each of these areas will be discussed in more detail in regards to the company Fisher & Paykel.
Fisher & Paykel Appliances, design, manufacture and market household white goods, priding themselves in their innovative designs and use of technology, as well as environmental awareness (Fisher & Paykel Appliances Limited, 2007). F&P are a perfect example of a global business, with production sites located in Auckland and Dunedin, New Zealand; Brisbane, Australia; Huntington Beach, California; Clyde, Ohio, USA and in Italy (Fisher & Paykel Appliances Limited, 2007). However, F&P have recently joined the global rush to manufacture white goods in low-cost economies

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