Corporate pressure to improve a factory's cost structure or customize a product to the demands of consumers in a particular nation can start a chain of events that ultimately leads to the development of additional capabilities at that factory.

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Upward migration in the strategic role of foreign factories arises because many foreign factories upgrade their own capabilities.This improvement comes from two sources,one being,pressure from the center to improve a factory's cost structure and/or customize a product to the demands of consumers in a particular nation can start a chain of events that ultimately leads to development of additional capabilities at that factory.

Corporate Pressure to Improve a Factory's Cost Structure or Customize