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One way to help assure this flow is to gain voice in the management of one or more of the foreign operations by investing in it.
Rationalized Production: companies produce different components or different portions of their product line in different parts of the world to take advantage of low labor costs, capital and raw materials. Another advantage of this type of rationalization is smoother earnings when exchange rates fluctuate.
Product-Life Cycle Theory: For market and costs reasons ,production often moves from one country to another as product moves through its life cycle. Volvo found it profitable to produce mature product in emerging economies of like South Korea...
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