Offshoring, Outsourcing, and Strategy in the Global firm

Interest in offshoring of economic activities has become a major issue lately. I propose three areas where the application of existing knowledge could inform this debate. First, offshore production has grown as global multinational firms to tap comparative advantages in multiple locations for worldwide markets - not to flee home countries, have built value chains. Second, a strategic perspective reveals that international locations offer unique resources and capabilities to MNEs, not just lower costs. Third, outsourcing is much less of a concern if we recognize that much is conduct through long-term alliances, not the open market, reducing transactional risks dramatically.