on are the size of the host market, advantages related to cost reduction for setting up in the host market and restrictions at market entry. This type of production acts as a substitute to imports and thought host market production becomes obsolete in the global production framework; there are reasons to adopt it such as the need to differentiate the product based on the markets preferences or after sales support and the existence of tariff barriers to trade. Product specialization for a regional market, takes place when production is geographically placed to serve a particular region (EU, NAFTA, etc.). The topographical assessment of the plants involves an exchange between large scale production economies and the movement cost of production inputs within the network and final products to end markets. Transnational vertical-integrated production, is the most common strategy deployed by transnational corporations and involves production processes, intermediate products and raw materials dispersed around the globe. With this strategy, an intermediate product can be manufactured in one part of the globe and sent to a different location in another country to continue the production process. Also, the final product may be exported to a third market. Despite the evolution of communication and transportation, the distance between head offices and production, accounts for a big portion on the decision where production should set up, with firms choosing locations closer to their home country due to geographical convenience. Transnational corporations outsource same parts of their production process to two or more contractors. With this strategy, firms avoid relying solely on one supplier, whose operations might get halted for different reasons, creating disturbances in the production network. (Dickens, 2007).
根据Dickens的说法，跨国公司可以遵循四种全球生产战略，这些战略因公司和行业而异。最简单的策略是全球集中生产。所有生产活动都集中在一个地点，然后通过公司的销售网络将产品出口到全球终端市场。主机市场生产，是一种生产类型，即生产和最终产品直接面向主机市场。在东道国市场与公司市场相似的情况下，最终产品的差异较小。宿主市场工厂创建的标准是宿主市场的规模、与在宿主市场建立成本降低相关的优势以及市场进入的限制。这种类型的生产是进口的替代品，认为东道国市场的生产在全球生产框架中已经过时；采用它是有原因的，例如需要根据市场偏好或售后支持来区分产品，以及存在关税贸易壁垒。区域市场的产品专业化是指生产在地理位置上为特定地区服务（欧盟、北美自由贸易协定等）。工厂的地形评估涉及大规模生产经济体之间的交换以及网络内生产投入和最终产品到最终市场的运动成本。跨国垂直一体化生产是跨国公司最常见的战略，涉及分散在全球各地的生产流程、中间产品和原材料。有了这一战略，中间产品可以在全球某个地区生产，并被送往另一个国家的不同地点继续生产。此外，最终产品可以出口到第三市场。尽管通信和运输发生了变化，但总部和生产部门之间的距离在决定生产地点时占了很大一部分，因为公司由于地理便利而选择了离本国更近的地点。跨国公司将其生产过程的相同部分外包给两个或多个承包商。有了这一策略，企业就可以避免只依赖一家供应商，因为供应商的运营可能会因不同原因而停止，从而在生产网络中造成混乱。
Communication across production network is possible through the lateral organization. The lateral organization is a process in which information is exchanged and decisions are being taken making coordination across the network feasible. Each unit within the network with information and quota in an activity, assign a person as a representative for the coordination of the activity. Thus, the lateral organization helps the firm decentralize their decision process and increases the firm’s ability to take more decision on more issues. Communication across networks can take two forms, formal and informal. However, for premier cross border communication, formal ways must be adopted. Central management appoints groups of managers to coordinate the functions of production, the units involved and come up with new products for global markets. To avoid conflict, gain clarity about their purpose and not overlap with other activities, these groups establish a charter of their scope and authority. For the staffing of the group, representatives are needed from every involved unit. The representatives should have adequate information about the issues concerned and the authority to decide on collective action and commit their unit. However, due to the human aspect of the group, conflicts are inevitable. For that purpose, the team must establish processes to resolve those conflicts. Also, if the group is not rewarded accordingly, might have less motivation to resolve these conflicts. Their performance and outcomes within the group must be
