and deregulation in trade and investment policies that reduce the cost of cross-border business activities. From the industrial management perspective, MNEs also seek cheaper natural resources, new production bases for producing parts and assembling the final products at lower cost, and new sources of assets and capacities for production. However, it is common for MNEs not to disseminate their unique technologies and management techniques to domestic firms in the host countries. Kimura and Ando (2005) discuss how the fragmentation of the production process will be commercially successful if the cost savings from the fragmented process is higher than the cost of integrating the fragmented parts. The cost savings come from production specialization and market efficiency, while the integrated process involves costs due to the management of distance and logistics costs.