THE USE OF PORTFOLIO MODELS FOR PRODUCTION RATIONALIZATION IN MULTINATIONAL FIRMS

This article suggests the use of portfolio models to facilitate the production rationalization process in multinational firms. The degree to which portfolio planning is adopted will ultimately be determined by the perception of potential benefits within the individual firms. Adopting an ongoing production rationalization policy will enable decision makers to regularly and systematically raise questions about their firms' global outlook. In today's highly competitive multinational markets, this approach can greatly facilitate the MNC and should replace intuitive approaches.