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Foreign Direct Investment (FDI), Global Sourcing and Industrial Linkages

In: Globalization of Production and the Competitiveness of Small and Medium-sized Enterprises in Asia and the Pacific: Trends and Prospects

Author

Listed:
  • Masato Abe

    (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP))

Abstract

Over the last two decades, the use of external outsourcing has become an important strategic issue, with increasing recognition of the benefits that effective outsourcing and international production strategies can provide. In the never-ending quest for greater efficiency and cost savings, many companies have decided to source parts and components from low-cost suppliers globally, and in many instances have transferred certain segments of or the entire production process to new locations overseas. Indeed, international procurement and novel offshore integrated production arrangements have become critical to the competitiveness and success of global firms. Many corporations now have established presences across North America, Europe and the Asia-Pacific region, often away from their own corporate headquarters and traditional markets. As a result, FDI and trade have grown in an unprecedented fashion.

Suggested Citation

  • Masato Abe, 2009. "Foreign Direct Investment (FDI), Global Sourcing and Industrial Linkages," STUDIES IN TRADE AND INVESTMENT, in: United Nations Economic & Social Commission for Asia & the Pacific (ESCAP) (ed.), Globalization of Production and the Competitiveness of Small and Medium-sized Enterprises in Asia and the Pacific: Trends and Prospects, volume 65, chapter 3, pages 59-71, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:ecchap:tipub2540_chap3
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