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The geometry of international business

In: Global Business

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Abstract

The optimal location of plants by a global firm is analysed in detail for the first time using measures of distance along the spherical surface of Planet Earth. With a uniform distribution of customers an optimal location strategy will seek a space-filling configuration of near-identical market areas that are as near circular as possible. The hexagonal space-filling solution for location on an infinite plane cannot be generalised to the surface of a sphere. Different spatial patterns are required for different numbers of plants; these may be based on triangles, squares, pentagons, etc. The chapter reviews the current state of knowledge on the topic, drawing on theories of spherical geometry and convex polyhedra, and on applications in physics, chemistry and medicine. The analysis highlights the importance for multinational (MNE) performance of a coherent global location strategy. Although somewhat abstract, the discussion provides a set of useful benchmarks against which the performance of alternative global location strategies can be assessed.

Suggested Citation

  • ., 2023. "The geometry of international business," Chapters, in: Global Business, chapter 8, pages 166-185, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22129_8
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035308040.00017
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