Factors and aspects of the relocation strategies of companies

• Main Authors: Serghei Margulescu, Elena Margulescu
• Format: Article
• Language: English
• Published: Nicolae Titulescu University 2013-05-01
• Series: Global Economic Observer
• Subjects: relocation; TNC; clustering; offshoring; outsourcing
• Online Access: http://www.globeco.ro/wp-content/uploads/vol/split/vol_1_no_1/geo_2013_vol1_art_001.pdf

In 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. Supply chains have expanded to new areas of the globe and big traditional providers have also expanded their global presence by an increasing trend of co-localization with their main customers. Contract manufacturers have multiplied and strengthened, expanding their geographical distribution. A more obvious trend was that of the geographic dispersion of other global value chain functions such as business services and logistics support functions. Relocation to countries with cheap labor is not always a successful strategy. Therefore the decision to relocate in international geographical area, regardless of the structure formula, offshoring or outsourcing, must be based on a more diverse set of factors.