International Production & Sourcing

Abstract

MNCs are complex phenomena but their ultimate objective is to sell their products to customers, and while other value-chain activities (like R&D and marketing) are certainly highly relevant, the MNC has to 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 a MNC’s strategy. In this Chapter, the basic decision between sourcing and production is shortly explained, the configuration of production and sourcing activities is discussed and basic production processes are highlighted. In addition, different types of foreign production plants are described and the main developments in international sourcing explained.