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Factors And Aspects Of The Relocation Strategies Of Companies

Author

Listed:
  • Serghei Margulescu

    (Faculty of Economic Sciences, "Nicolae Titulescu" University, Bucharest, Romania)

  • Elena Margulescu

    (Faculty of Economic Sciences, "Nicolae Titulescu" University, Bucharest, Romania)

Abstract

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 ex panded 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. There fore 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.

Suggested Citation

  • Serghei Margulescu & Elena Margulescu, 2013. "Factors And Aspects Of The Relocation Strategies Of Companies," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 1(1), pages 4-10, May.
    • Handle: RePEc:ntu:ntugeo:vol1-iss1-13-004
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    File URL: http://www.globeco.ro/wp-content/uploads/vol/split/vol_1_no_1/geo_2013_vol1_art_001.pdf
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    Cited by:

    1. Serghei Margulescu & Elena Margulescu, 2014. "Reshoring in Manufacturing and Services," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(1), pages 90-95, May.

    More about this item

    Keywords

    relocation; TNC; clustering; offshoring; outsourcing;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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