Global trends

The growth of international production is an important part of the process of globalization. “International production” refers to that part of the production of goods and services of countries that is controlled and managed by firms headquartered in other countries. Firms can exercise control of production in countries (“host countries”) other than their own (“home country”) either through the ownership of a minimum share of equity – that is, a minimum share in the capital stock or assets – of the enterprises in which the production takes place, or through contractual (non-equity) arrangements that confer control upon them. Exercising control and having a voice in the management of an enterprise located abroad (“foreign affiliate”) – whether through capital investment or through contractual arrangement – leads to international production.

Sustainable Development Goals:

Decent Work and Economic Growth