LOral markets 34 brands of cosmetics, fragrances, and hair care products in 130 countries. The companys international

L’Oréal markets 34 brands of cosmetics, fragrances, and hair care products in 130 countries.

The company’s international strategy involves manufacturing these products in 42 plants located around the world. L’Oréal’s international strategy is discussed in its operations section of the company’s website (http://www.loreal.com/careers/who-you-can-be/operations)

and in its press releases, annual reports, and presentations. Why has the company chosen to pursue a foreign subsidiary strategy? Are there strategic advantages to global sourcing and production in the cosmetics, fragrances, and hair care products industry relative to an export strategy?