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Abstract
Internationalization is a dimension that adds new strategic possibilities for companies, while increasing the complexity of their decision-making process. There are two main reasons for companies to participate in international operations: (1) expand their competitive markets and (2) use benefits from foreign locations to carry out operational activities, partially or completely. Both have been studied extensively using different platforms, the most recent being that of the benefits of trade agreements. This article discusses some factors that influence decisions to participate in international operations. The factors considered are (1) stage of the product in its life cycle, (2) technology of the product, (3) proximity of the market, (4) logistical considerations, (5) competitive priorities, and (6) effects of experience. Specifically, the influence of these factors on the configuration of the production system is considered.
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