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1、9CompetitiveInteractionsChapter7focusedonasetofissuesthataffectallfirmsthataretry-ingtoconstructalocationalstrategythatspansinternationalborders.Wearguedthatfirmsshouldselectfromamongstmanypossibleinter-nationalproductionstrategiestheonethatbestresolvesth
2、etradeoffsbetweenthefourelements:factoradvantages,tradecosts,marketsizes,andscaleeconomies.Myviewisthatthefourelementsshouldbethemostimportantinfluencesonwheretodeployafirm’sresources.Ifbuildingafactorin,say,Vietnam,makesnosensebasedonthefourelements,then
3、itprobablyisabadidea.Nevertheless,thereisanotherconsiderationthatmanymanagersinvoketojustifythelocationandtimingoftheiroutwardinvestments:theactionsofrivalfirms.Inthischapterwewillconsiderhowinteractionswithcompetitorsaffectloca-tionstrategyofthemultinat
4、ional.Wewillexaminesomesimplesitua-tionsinwhichthelocationandtimingofinvestmentdecisionsdependcriticallyontheactionsofafirm’scompetitors.9.1MotivatingExamplesTosetthestagefortheanalysisthatfollows,wewillbrieflyreviewafewepisodesthatmayillustratecompetiti
5、veinteractionsinpractice.9.1.1SUVsintheUSAIn1990bothBMWandMercedesservedtheworld’slargestautomar-ketusingtheirfactoriesinGermany.Duringthe1990sthischanged,withbothfirmsestablishingfactoriesinstatesintheSoutheastoftheUS.Thefollowingtime-lineshowswhenthef
6、actorieswereestablishedandalsohowBMWaltereditsproductionplans.Thetime-linealso1509CompetitiveInteractionsshowslaterinvestmentsbyHyundaiandNissaninthesameregionoftheUS.1992BMWpicksGreer,SouthCarolina,asthesiteforacarproductionplant.1993Mercedesannounces
7、itwillbuildsportutilityvehicles(SUVs)innewfactoryinVance,Alabama.1994BMWplantbeginsproductionofthe318iatGreer.1995BMWplantsstartstoproduceZ3roadsteratGreer.1997MercedesbeginsM-classproductionatVance.1998BMWdecidestoexpandtheGreerplantanduseittoproducet
8、heX5(anewSUV).2002HyundaiannouncesplantinMontgomery,Alabama.Productiontobeginin2005.2003NissanbeginscarproductioninCanton,MississippiinMay.2003Mercedesannounces$600millionexpansionoftheVanceplant,with2000employeestobeaddedbyearly2005.Me
