International Production and Operations Management $($IPOM$)$ is a critical aspect for companies operating globally. It involves managing the production of goods and services in international markets, considering local production markets, labor, capital, and quality standards

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$.$ The strategic choices for locating production operations internationally include exporting, local assembly, and local production

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Strategic Choices for Locating Production Operations:

Export Strategy:

Companies can produce goods in their home country and export them to international markets. This strategy involves lower investment but comes with challenges like higher supply$-$chain costs, importation delays, exchange$-$rate risks, and isolation from local knowledge

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Global Components with Local Assembly:

This strategy involves sourcing components globally but performing local assembly in another country. It offers advantages like tax incentives and better customer response but increases coordination costs and may lead to unfavorable outcomes due to the country$-$of$-$origin effect

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Local Production Strategy:

Companies can opt for complete local production by sourcing materials in the foreign country and manufacturing the product there. This strategy leverages lower$-$cost labor, regional suppliers, and local knowledge but requires high investment and exposes the company to political risks

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Supply$-$Chain Management:

Supply$-$chain management plays a crucial role in international operations by integrating supply$-$and$-$demand management across companies. Activities within the supply chain include demand management, procurement, inventory management, production planning, transportation management, order management, distribution network design, and product$-$return management

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$.$ Cross$-$organizational teams across the supply chain bring diverse perspectives that benefit overall operations.

In conclusion, understanding these strategic choices for production operations and the value of supply$-$chain management is essential for companies engaging in international business to optimize their operations effectively.