Authors : Mohammed Shamsul Karim and Mohammad Yasir Rabbi
Abstract: The world business environment has been changing. In this changing context, early theories in the field of international location decision are not working. So it is necessary to develop a new theory that will identify key strategic factors affecting international location decision. In this paper, attempt has been made to develop a theory considering all the changing business conditions. It has been identified in the study that corporate strategy of the firms in international context gives the dimension of factors affecting location decision and in the changing situation investment security is getting the first priority. To analyse the theory, the example of textile industry has been used. It is found that in international location decision corporate strategy is the push factor while geographical proximity, tariff and non-tariff barriers, secure raw materials, labour cost and location characteristics are pull factors for the companies. The theory has implications for theoreticians, government policy makers, and for practicing managers working in the international context.
Mohammed Shamsul Karim and Mohammad Yasir Rabbi , 2005. Strategic Factors in International Location Decision: An Empirical Analysis on Changing World Context . Pakistan Journal of Social Sciences, 3: 75-83.