The New Production-Sharing Networks
Issue 3, 1990

Production sharing is a strategy for conducting industrial operations in which certain procurement and manufacturing processes are restructured and shared, with firms in a developed country furnishing capital and technology-intensive components, while firms in a developing country furnish labor-intensive energy and other services. Such production-sharing partnerships achieve a variety of strategic benefits, including more flexible manufacturing and lower total costs - typically by 10 to 20 percent.