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Participation in Global System of Production:
As national economies are getting more inter-linked, the share of foreign components in most manufactured products is progressively increasing. This is well-known to all who are involved in international business, but let us give one telling example. Of the $20,000 for a General Motors automobile, $6,000 goes to South Korea for routine labour and assembly operations, $3,500 to Japan for advanced components and electronics, $1,500 to Germany for styling and design engineering, $800 to Taiwan and Singapore for small components, $500 to the UK for advertising and marketing services and $100 to Ireland and Barbados for data processing and about $800 to strategists in Detroit, banks and insurance in the USA. At another level, Drucker points out that the only thing really made in Japan of an electronic calculator carrying the lable 'Made in Japan' is the label. India should carve out a role for itself in this emerging international division of labour.
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