ABSTRACT
This conclusion presents some closing thoughts of key concepts discussed in preceding chapters of this book. The book suggest that, to understand the determinants of international production in late 1980s and 1990s economists may need to modify their traditional concepts of interfirm relationships. It also argues that the paradigm can be usefully applied to explaining non-equity forms of economic involvement. While, from company accounts and reports, one can glean something about the extent and significance of a firm's foreign activities, affiliates and subsidiaries, there is no way of measuring value of their non-equity alliances. The idea of a world production took shape, international sourcing in several industries became the norm, and there was a marked increase in the propensity of multinational enterprises to centrally control their sourcing, marketing and innovatory activities. A successful MNE will be one which can effectively co-ordinate the galaxy of its relationships in such a way which maximizes productive efficiency and minimizes transaction costs.
