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international, or local—at which scale is most tightly tied to profitability is often ahelpful guide to determining what constitutes a region.Basically this literature makes an important contribution to the field by showing thatsales and production activities in the MNE are regionally structured, we argue thatthis assessment is biased for two reasons. First, this approach overly focuses ongeographical location of downstream activities, while disregarding that of knowledgecreation and other relevant upstream activities in the MNE. Second, the approachassociates the firm’s value creation only with its internalized activities and does notcapture the value created through any activities that are externalized. Many MNEsrely to a significant extent on value creation outside the firm’s legal boundaries. Weargue that such omissions are likely to lead to biased interpretations using differenttheoretical lenses, such as the knowledge-/resource-based view, internalization theoryand more general transaction cost economics. the ‘regional strategy’ stream ofliterature that highlights the relevance of the region for MNE decision-making.Specifically, proponents of the ‘regional strategy’ perspective claim that most MNEstrategies are built around a regional locus, citing evidence from studies in thisliterature stream that show that by far the largest proportion of sales (74.6 per cent)and assets (75.5 per cent) forthe Fortune Global 500 are generated/deployed in the company’s home region (Rug-manand Verb eke, 2008). We do not dispute the empirical results presented in the VA pointpaper and other major papers of the regional strategy perspective. However, wecontend that the conclusions that are drawn from these empirical results are at oddswith the reality of today’s complex international business world. We argue that theseconclusions arise from some unstated assumptions as well as from a rather narrowinter-predation of transaction cost theory and the resource-based view of the firm. Inso doing, the regional strategy literature does not holistically incorporate the workingsof global value chains (GVCs) inside and outside a firm’s boundaries.Objective :Regional strategy based on the target for reach the product to the consumers.Globally this chain is processing by a group of team or employee of the organizations.Methodology :Data and necessary information is collected from “Journal ofmanagement”Findings :(1)Regional strategy is the process of distribute the product.(2) A combination of relation of internal or external activities of MNEs.Limitation :(1) Lack of available and reliable data (2) Lack of prior resource studies on the topic.iv.Risks and Opportunities of Participation in Global Value Chains
Since the first industrial revolution, waves of technological improvement have changed the boundary of production and redefined the role of the state. The information and communication technology revolution has not only increased productivity, but has also