So widespread and growing is international trade in input and the opening of production facilities abroad that we are rapidly moving toward truly multinational firms with roots in many nations rather than in only one country, as in the past. And this affects more than multinationals. Indeed, firms that until a few years ago operated exclusively in the domestic market are now purchasing increasing quantities of inputs and components and shifting some of their production to foreign nations. For example, Malachi Mixon , an American medical –equipment company, now buys parts and components
In half a dozen countries, from China to Colombia; 10 years ago it did all of its shopping at home. The popular Mazda Miata automobile, which is manufactured in Japan, was conceived in Mazda, s California design lab by an American engineer at the same time that Mazda opened production facilities for models in the United States.