An novel economy model for manufacturing network

Global manufacturing network is a new type of resource allocation. This article first introduced the background and organizational structure of global manufacturing network. Based on analyzing the defects of governance model of traditional enterprises and market, the article pointed out that the global production network has superiority effectively overcoming the shortcomings of enterprises and market because of its existence of network credit and specific assets. The article explained the stability using complete information static Economy model and drew the conclusion with significant meaning.