ABSTRACT
Localization is a core concept of international business. The power of theory is not only its ability to predict observation but to explain it and to reconcile both observation and explanation with the greater body of knowledge that exists within the tradition. The discipline of international business attempts to explain the phenomenon of off-shore expansion of business activity. The localization profiles observed in the case study are expressions of this phenomenon. While management theory has much to say about market entry strategies and market segmentation strategies, it is less clear that international business Theory has adequately addressed the issue of how foreign firms respond to pressures to shift Client Base under conditions of severe off-shore environmental flux. The key characteristic of both is that market forces apply more strongly than under the initial circumstances that brought the majority of firms into China in the first place.
