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Choice Factors of Location for Production Localization of International Heavy Engineering Companies by the Example of JSC Tyazhmash

Student: Andrey Trifonov

Supervisor:

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2020

This research deals with the study of choice factors of a site for localization of production for international heavy engineering companies. The paper considers theoretical concepts about the process of internationalization, the concept of localization of production. The connection between concepts of internationalization and localization is made, and modern classifications of choice factors for production localization are considered. The machinery industry, including structure and directions are studied, as well as the heavy engineering industry with main directions, the competitive environment, and end users are considered in detail. Examples of heavy engineering companies that have a practice of localization of production, as well as the factors that guided them, are described. As the main example, the process of localization of production of the Russian company JSC TYAZHMASH in the Czech Republic was analyzed. A comparative cost analysis, as well as analysis of other factors were made. The result of the research is a list of choice factors for localization of production for international heavy engineering companies. Key words: choice factors, production localization, internationalization, heavy engineering

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