Effective Global Production Outsourcing with Tariff Concessions


  • Yanzhi David LI (Principal Investigator)Department of Management Sciences


As supply chains become increasingly globalized, outsourcing has become a key to achieving success in highly competitive markets. Just about every player, from Nike to IBM, outsources in one way or another. Getting things done in a global supply chain is no longer just a factory location problem, as there are new economical dimensions brought about by a more complex and interdependent global economy. Significantly, there has been a proliferation of bi- and multi-lateral free trade agreements in the last decade, which provide manufacturers the opportunity to exploit tariff concessions. In the existing operations management literature there is a dearth of research that addresses such issues. This study aims to deal with some of these issues that affect the global manufacturer; in particular, it investigates the impact of tariff regulations and proposes models that can incorporate these and which the global manufacturer can use. This study is particularly relevant to Hong Kong, which is a base for a large number of multinationals who outsource globally in view of the ever increasing number of trade concession opportunities in the region.


Project number 7200068
Status Finished
Effective start/end date 1/09/06 -> 8/10/08