Question

What is Technical efficiency in globalization ?

Answer 1

Such efficiency indicates producing goods at the maximum level by the use of input at its minimum level; suppose the normal time of producing a garment is 2 hours, if it is produced in 1.5 hours then there is technical efficiency of labors.

Points on a production possibility frontier (PPF) indicate those technical efficiencies, since combinations of products are high.

Operating at the pace of international scale is globalization (such as autonomous production system of producing goods in large numbers) could only be achieved if there is technical efficiency (installation of such machine which can give such huge production). Therefore, without the scope of technical efficiency globalization can’t be done, because at higher production lower would be the cost in order to stay in the global competition.