Billions of dollars are being poured into developing
nations by multinationals as part of their diversification,
divestiture, facility location, and supplier selection
strategies. By integrating the literature in international
business, marketing, purchasing, and operations management,
a contingency model is developed to minimize
the overall costs of such decisions. This model provides
linkages between the type of product, organizational and
country characteristics, and the logistics and sourcing
strategies. In addition, it provides specific recommendations
to government officials in helping their countries
become global platforms for manufacturing and attracting
foreign investment.
