International Production and Sourcing
MNCs are complex phenomena, but their ultimate objective is to sell their products to customers. While other value-chain activities (like R&D and marketing) are certainly highly relevant, the MNC must ultimately provide the goods and services it wants to offer. Sourcing the necessary inputs and producing the right outputs is a complex task that is at the core of an MNC’s strategy. This Chapter briefly explains the basic decision between sourcing and production, discusses the configuration of production and sourcing activities and highlights basic production processes. In addition, different types of foreign production plants are described and the main developments in international sourcing explained.
KeywordsHost Country Home Country Production Site Production Stage Trade Barrier
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