Abstract
This paper reviews location theory to formulate a model for international relocation of production. The results highlight the role of internal factors and the appropriateness of the behavioural approach of location theory for explaining international production relocation. From a theoretical standpoint, the operational flexibility of multinational enterprises for transferring resources internationally proposes a transition from an economic geography perspective to a managerial perspective. With empowered multinationals and in a context in which internal factors have a great influence on decision-making, plant level variables gain importance for improving understanding of international production mobility.
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