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• W103529648 abstract "IntroductionIn the last two decades there have been significant changes in the factors that determine the geographic location or relocation of R & D, production and marketing of all transnational companies. Production was internationally dispersed long ago, but the trend of integration on a so large geographic scale is relatively recent. Supply chains have expanded to new areas of the globe and have virtually integrated regional production areas that were previously separate structures.Contract manufacturers have multiplied and strengthened, also expanding their geographical distribution.Great traditional suppliers have also expanded their global presence by an increasing trend of co-location with their main customers. In connection with this, the so-called postponement trend appeared, meaning that components are manufactured or assembled as close as possible to the final sale locations to reduce transportation costs, which for some products are still high.A more obvious trend was that of the geographic dispersion of other global value chain functions such as business services and logistics support functions.Even innovation, which is supposed to be rooted in their own countries for strategic and skilled professionals reasons, is increasingly performed in overseas locations. Cutting-edge research is still mainly carried out in developed countries, but we can see that emerging countries allocate increasing and impressive amounts on research and development spending.1. Factors of the relocation decisionTo summarize, we can mention the following categories of factors acting simultaneously on relocation decisions of transnational companies:a) Differences in costs. They remain an essential factor in choosing location, especially in respect of the production function, but to a greater extent also in what involves other activities such as research and development, accounting services, IT or marketing. In selecting the location, the production costs are evaluated in the broader context of the efficiency and productivity of the location in question. This aspect is often neglected in discussions of comparative costs, but is essential for the transnational companies strategy of achieving a systemic efficiency throughout their entire productive system. Therefore, a location is analyzed according to how efficient performs a particular function in coordination with functions located elsewhere, and not in isolation.b) Search for valuable assets such as the workforce qualification or the availability of talented people. The development of informatics and telecommunications has increased the ability of transnational companies to coordinate increasingly complex functions located at increasing distances. This stimulates them to outsource these functions in close relation with the mobilization of a broader range of skills and knowledge.c) Clustering, which has turned into a global process of recognition by transnational companies of the benefits of co-location with suppliers, competitors, service providers, research and development centers. Although distances matter less in closing transactions, it is found that closeness and access to knowledge remains an important factor of competitiveness, and as such relocation to industrial parks or other areas of concentration of R & D activities will further remain a strategy of transnational companies.d) The growth potential of markets is also an important factor. It is obvious when looking at the location of many activities in China, India and other emerging countries with large populations that, with the increasing standard of living, will also become important outlet markets.e) Other factors, such as :-Existence of a relatively developed infrastructure which creates an increased efficiency from start,-Quality and cost of public utilities,-Availability of building land,-Institutional incentives offered by central and local authorities,-Laws in the field of financial and economic activities and labor-Aspects related to the quality of life. …" @default.
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• W103529648 date "2013-01-01" @default.
• W103529648 modified "2023-09-24" @default.
• W103529648 title "Factors and Aspects of the Relocation Strategies of Companies" @default.
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