ABSTRACT
This chapter explores the main factors that explain the segmentation of production processes and the resulting relocation or outsourcing of these segments. These processes generate a fine international and regional division of labor that combines the different advantages of firms and of production sites. Relocation and outsourcing are part of the reorganization of MNCs (multinational corporations). They adopted strategies that pulled away from vertical organization. This included: segmenting their productive activities, relocating parts of the production process abroad, developing networks of national and international suppliers, buying specialized goods and services in the market, and even relocating the administrative services that had been previously produced in house.
