1;Preface;6 2;Table of Contents;8 3;1 Why Go Global? The Multinational Imperative;14 3.1;Summary;14 3.2;Key questions, Chapter 1;15 3.3;1.1 Phases of Globalization;15 3.4;1.2 What Are the Forces Accelerating Global Production?;21 3.5;1.3 Goals of Global Production;26 3.5.1;China and India - Attractive Markets if Approached Right;29 3.5.2;The Grundig Example;34 3.6;1.4 Current Production Networks of the Three ProNet Focus Industries;38 3.7;Further reading;45 4;2 Selection Criteria: Assessing Relevant Trends and Indicators;46 4.1;Summary;46 4.2;Key questions, Chapter 2;47 4.3;2.1 The Relevance of Selection Criteria for Global Production Locations;47 4.4;2.2 Markets and Market Development;53 4.5;2.3 Factor Costs - Labor, Capital, and Materials;62 4.6;2.4 Productivity and Economies of Scale in Manufacturing;73 4.7;2.5 Logistics - Direct and Indirect Costs;83 4.8;2.6 External Factors - Boundary Conditions and Risks;90 4.8.1;External Factors - How the Mercedes Car Group ( MCG) Selects Production Locations;93 4.8.2;Radical Change in the Textile Industry: The Consequences of Hampering Globalization;95 4.8.3;Currency Risks and Competitive Strategy - Airbus Uses Financial Derivatives to Hedge Against Exchange Rate Fluctuations;98 4.9;2.7 Handling Migration - Transition Financials;106 4.9.1;Suspicion of Product Piracy: GM Sues SAIC Subsidiary Chery;107 4.10;Further reading;113 5;3 Investments Abroad: Using the Right Evaluation Techniques;114 5.1;Summary;114 5.2;Key questions, Chapter 3;115 5.3;3.1 Basic Models;116 5.4;3.2 Dimensions of the Analysis;124 5.5;3.3 Specific Tools and Analysis Methods;130 5.6;3.4 Survey Results and Case Studies;136 5.6.1;Building a Global Business in Ten Years - Investment Decisions at Deutsche Post World Net;144 5.7;Appendix: Investment Analysis Techniques;149 5.8;Further reading;149 6;4 Network Design: Optimizing the Global Production Footprint;152 6.1;Summary;152 6.2;Key questions, Chapter 4;153 6.3;4.1 Holistic Approach;154 6.4;4.2 Network Phenotypes;176 6.5;4.3 Production Footprint Redesign: Case Studies;179 6.6;Further reading;202 7;5 Production Technology: Adapting to Maximize Local Advantage;203 7.1;Summary;203 7.2;Key questions, Chapter 5;204 7.3;5.1 Reasons for Adaptation;204 7.4;5.2 The Options for Adaptation;212 7.4.1;Aligning Technology with Local Conditions: Weighing Equipment Manufacturing at Sartorius in China, Germany, Malaysia, and the US;217 7.4.2;Hero Honda as an Example of Automation in Low- Cost Countries: as Little as Possible, as Much as Necessary;220 7.4.3;Alternative Production Technology: Industry- and Location- Specific Solutions for Balancing Rotors;223 7.4.4;Automation in High-Cost Countries: Integrated Optimization of Product, Machinery and Sequence at SGF;230 7.5;5.3 Evaluation and Selection;232 7.5.1;Using Alternative Manufacturing Methods: Armature Shafts for Small Motors;237 7.5.2;Minimizing One-Off Expenditure: An Automotive Supplier Uses Older Machinery and Plant Concepts;244 7.6;Further reading;246 8;6 Implementation: Ramping Up New Facilities for Top Performance;247 8.1;Summary;247 8.2;Key questions, Chapter 6;248 8.3;6.1 Improvement Potential Revealed by the Survey;248 8.4;6.2 Detailed Regional Planning;250 8.4.1;Pulling Out All the Stops - Too Far: A Mechanical Engineering Company Overreaches Itself in Asia;251 8.4.2;Bargaining Power: Raising the Stakes in Back- End Chip Production;254 8.4.3;Accelerating Location Planning: Best- Practice Site Selection in South Korea;255 8.5;6.3 HR Management;258 8.5.1;Choose your Friends Carefully: How an SME was Exploited by its Joint Venture Partner;258 8.5.2;Revving Up for Excellence: Global Executive Staffing at an International Automotive Supplier;263 8.5.3;Fueling for Performance in China: Bosch Wuxi Uses Cross- Site Know- How Transfer to Ramp Up for Sophisticated Injection Valve Production;268 8.5.4;Staffing for Success in Developing Countries: Hero Honda Achieves High Productivity via Low Attrition;270 8.5.5;Overdrive on all Cy