Could flexible specialization be the best solution to the pr

Could flexible specialization be the best solution to the problems of Fordism across different national business systems? Why or why not?

Solution

Fordism is the term used in manufacturing industry which says business to produce a single product in mass manner. Mass production, mass consumption, common assembly lines, repetitive labour work etc. are the major characteristics of Fordism.

But due to factors such as Globalization, oil shocks of mid 1970s, increase in privatization etc. , Fordism became uncompetitive and such factors have forced the firms to shift from Fordism to a completely new tactic known as flexible specialization.

Flexible specialization allows the firms to have different product lines according to the changing taste of customers. It also allows shifting production lines to territories where firms can get cheap inputs such as raw materials and cheap labour.

With advent of new technologies, computerization and automation, Fordism was bound to be shut across national business systems because of it becoming uncompetitive. Now, Firms were required to adapt to the changing scenarios such as changing needs, tastes, fashion etc. The production also needs to be in synchronization with the changing demand pattern. Flexible specialization allows for these changes in the business systems making it more competitive and responsive in national business systems.

Thus, one can say that flexible specialization is the best solution to the problems of Fordism across different national business systems.