Globalization enables the manufacturing companies to a vast Policy liberalization.This includes policies to facilitate freer trade, direct investment, borrowing and portfolio investment, privatization etc. And also it ensures measures of ‘openness’, most often trade/GDP ratios and of trade liberalization like nominal tariffs, relative exchange rates, black market premia on exchange rates or qualitative indices of liberalization 4. But here also there are some challenges as the indicators of openness may be arbitrary, nominal tariffs may not capture the true incidence of barriers and other measures may be misleading. 5 In any case, it is not clear that they measure ‘true’.Global manufacturing outsourcing has been increasing for several years; it already has been adopted in the apparel, electronics, and automobile industries. The economic benefits have been quantified extensively; and, although sometimes challenged, the financial initial analysis is compelling given the less expensive skilled and unskilled labor costs in countries like China, India, Mexico, and Eastern Europe versus the U.S.If we take Information Technology, it has also gone global. For instance, when it was developing the highly successful iPod, Apple Computer worked with up to 10 firms and independent contractors around the world to find the right ideas and components. Even during the product design and customer requirement definition phases, it used two countries: Japan and the U.S.(5) From the above it can be seen that the globalization helps the organizations to expand its manufacturing and production all over the world, to find out a new business horizon. But these organizations, in fact, face many challenges in their business affairs. The challenges may be in the form of the operation sources from overseas production facilities that service global demands, and some products have a minimum order quantity constraint. Sometimes Domestic operations will find it increasingly difficult to remain competitive, responsive and efficient.
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