These new international economies of scale can be achieved in five basic areas: product development, purchasing, production, demand management, and order fulfillment. In product development, the firm can design a core product for the entire world economy, building into the product the possibility of variations and derivatives for local markets. Firms can also achieve new economies of scale by purchasing raw materials, parts, and components globally rather than locally, no matter where their operations are located. Firms can coordinate production in low – cost manufacturing centers with final assembly in high- cost locations near markets. They can also forecast the demand for their products and undertake demand management on a world rather than national basic. Firms can achieve large economies of scale by shipping products from the plants closest to customers, allowing the firms to hold less inventory around the world. These new international economies of scale are likely to become even more important as we move closer to a truly global economy.