The term 'Global Web' encompasses the concept of dispersing various stages of the value chain across different geographic locations to optimize costs or enhance value. This strategy allows companies to leverage the advantages offered by different countries, such as lower labor costs, access to specific resources, or specialized skills that may not be available locally. By strategically locating different processes—such as production, assembly, and research and development—companies can create a more efficient and effective operational model that takes advantage of global efficiencies.
This approach contrasts with the idea of establishing a single local market, which does not acknowledge the benefits of globalization. Additionally, while networks of local businesses in global cities can contribute to international business dynamics, they do not fully encapsulate the broader strategy of managing a dispersed value chain that characterizes the Global Web concept. Similarly, the expansion of domestic brands into international markets refers to market entry strategies rather than the intricate logistics and production considerations involved in constructing a global value chain.