Grainger, A (2000) Globalisation: Implications for Supply-Chains , Logisitcs & Transport Focus, Vol.2, No.2, March, pp.46-47 [PDF: Download , 293kb]

Introduction 

On roads, canals and navigable rivers Adam Smith (1776) writes in his economics classic "The Wealth of Nations" that they are "[..] the greatest of all improvements." By reducing the expense of the carriage of goods they encourage the development of the remote and give access to towns. They introduce new commodities into old markets and they open up new markets for producers and traders alike. With extended market boundaries Smith argues that local monopolies are broken down, thus intensifying competition and enhancing economic welfare. Moreover, as markets grow manufacturers can specialise and develop economies of scale further reducing cost of produce. Following Smith's argument, the facilitation of the movement of goods is one significant facet in the growth of markets and economic welfare. As national frontiers become less significant it is worth while re-exploring the significance that our lines of services in transport, logistics and supply-chain management have in the more contemporary context of globalisation. The questions that this article asks in aiming to stimulate debate are:
• What is globalisation?
• How does it effect logistics and supply-chain management?
• What challenges are set through globalisation?
• What agendas does Globalisation dictate?
• What are the implications?

[PDF: Download , 293kb]