What are the six strategic roles played by foreign-based facilities?

Foreign-based facilities play six strategic roles in today's globalized economy. Firstly, they serve as production platforms, allowing companies to take advantage of cheaper labor and resources in foreign countries. Secondly, they act as market access points, enabling companies to establish a local presence and better serve customers in foreign markets. Thirdly, foreign-based facilities serve as hubs for innovation and research, as companies tap into the talent and expertise available in different countries. Fourthly, these facilities help companies manage risks by diversifying their operations across multiple locations. Fifthly, they support global supply chain management, helping companies streamline logistics and reduce costs. Lastly, foreign-based facilities also play a role in knowledge transfer, fostering the exchange of ideas and best practices across different regions. Overall, these strategic roles contribute to the competitiveness and growth of companies operating in the global marketplace.

This mind map was published on 17 November 2023 and has been viewed 53 times.