Final answer:
General Motors and Chrysler can reap benefits from global operations by utilizing economies of scale, engaging in international trade, encountering increased competition, fostering innovation, and effectively managing their supply chains.
Step-by-step explanation:
Car manufacturers like General Motors and Chrysler can benefit from global operations and supply chain management by leveraging economies of scale to reduce average production costs while maintaining a diverse offering for consumers. Engagement in international trade allows these companies to make and sell their products in numerous markets worldwide, which can lead to increased competition. This competition is a driver for innovation and forces automakers to be responsive to consumer demands, resulting in improvement in the quality of automobiles. Dynamic comparative advantage also plays a role in the global strategy, showing that trade and shifting production focus can lead to substantial gains in industry learning and innovation over time.
Moreover, an efficient supply chain can create opportunities for cost-saving through just-in-time delivery and may even be leveraged by workers and unions to impact negotiations. However, a delicate balance must be maintained to avoid supply chain disruptions that can arise from dependency on single sources or just-in-time systems, as evidenced by the General Motors shutdowns caused by strikes at a supplier's factory in the 1990s.