The mos!

significant factor that drives globalization is the ongoing economic and regulatory
The removal of reforms in several developing countries. Beginning from 1991. we embarked on a set of regula-
enuybarnersand tory changes that made India much more attractive in terms oflocating a ma nufacturing facility.
reduct10n1nthec05l Two c-vents have been broadly responsible for this. First is the reduction in customs and excise
ofmamifactunngdue tariffs and a move towards the single-point value-added tax (VA1) regime. The other is the deli-
toianffredlJCIIOrn ccncing of several sec Iors of industry and the progressive removal of the cap on foreign direct
willmakelndaaan investment (FOi). Further. there has b<.-en a progressive simplification of the procedural aspects
anractivedest,natJOnto of setting up operations here and running them on a day-10-day basis.
wh1chmanufactunng
These changes havc several im plications for 1he location choices of multinational firms. The
basesca n beshifted.
removal of entry barriers and reduction in 1he cost of manufacturing due to tariff reductions

Fadliti~ l oc;atiQn 129

FIGURE 6.1 Impact of globalization o n location decisions of organizations

will make India an auractive destination to which manufacturing bases can be shifted. In the case of multinational firms
wit h manufacturing facilities already located in India. these facilities will be attractive candidates for fur1herdevelopment
and )!rowth.
t Longest procr~ing lime (LPT): This rule is the reverse of the SM' rule. The job with 1he longest processing time is scheduled
ahead of other competing jobs. For our example, 1he order in which the four jobs are scheduled is exactly in reverse
Oob 3--Job I - Job 4-Job 2).
t Earliest due dau(EDD): It is possible to establish priorities on the basis oft ht• due date for the jobs. The logic here is that
a job that is due 1omorrow needs to be scheduled ahead of ano1 her 1hat is due 1he day af1er even 1hough the second
job may require lesser processing lime compared IO the first. Therefore, jobs can be rank-ordered on the basis of due
dates. If the chronological order of the due dates of the four jobs is Job 4-Job 3--Job 2-/ob I, then EDD rule will rank
thejobsinthatordcr.
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