Case Study: The Global Economy

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Unit IV case study How has the global economy affected the importance of cost estimation and cost control for many project organizations? The global economy has greatly changed project management strategies for many project since it had created barriers and challenges and also made project management easier in other aspects. First is that globalization has led to decreased trade barriers between countries which allows for sourcing of raw materials in a cost effective manner which allows projects to run smoothly. Secondly, globalization has led to market-driven economies which means that the market and economy generally change in a manner that allows the consumer's demands to be met with ease. This has allowed project managers to create dynamic projects that change as markets and economic factors change. For example in the United States Postal Service (USPS), effective cost management has helped control the cost of services provided despite changing client needs ADDIN EN.CITE Baxter1989740(Baxter, 1989)74074017Baxter, VernThe Process of Change in Public OrganizationsThe Sociological QuarterlyThe Sociological Quarterly283-3043021989Wiley on behalf of the Midwest Sociological Society00380253http://www.jstor.org/stable/412069310.2307/4120693( HYPERLINK l "_ENREF_1" o "Baxter, 1989 #740" Baxter, 1989). Globalization has also led to deregulation in certain industries which has fostered healthy competition and allowed new entrants into the market thus leading to price wars
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