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FIGURE 11-3 Manufacturing direct labor cost (in billions of U.S. dollars) in different parts of the world identified as having a large market, low labor cost, or both. SOURCE: United Technologies Corporation.

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His statement fits well with the theme of this paper. A company must have a vision of a global market, as well as maintaining productivity in the United States. In order to compete with the $2 per hour wages found in other parts of the world, the bar must be raised for the United States by creating new products and markets that do not yet exist and educating the workforce. As an example of new product/market creation, UTC has 250 fuel cells providing electricity around the world. These fuel cells have 250 kilowatts of power and a lifetime of 40,000 hours. By creating a supply chain around this product, the cost of the unit can be decreased. As an example of the importance of educating the workforce, UTC pays for any employee to attend school on any subject, in addition to giving them a bonus when they complete a degree. This system creates incentives and motivation for individuals to excel, as well as creating loyalty to the company. In the long run, this makes for a more productive and efficient company capable of competing in the global manufacturing market.

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Peter F. Drucker. 1997. The global economy and the nation-state. Foreign Affairs 76(5).



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