As such, amongst other things, globalization, in the context of Logitech's international activity, refers to outsourcing and off-shoring both services as well as products. Furthermore, it also implies the global distribution of the necessary resources throughout several countries that detain a comparative advantage.

As such, Taiwan has several arguments in favour of hosting Logitech's manufacturing activities. The crucial argument was that of reduced costs of human labour. Even though only a small percentage of the final retail price of a computer mouse is workforce related (7%), cheaper labour was a convincing incentive. But aside from cheaper workforce, there were also other arguments in favour of manufacturing in Taiwan. Logitech was able to directly purchase the base products they needed for manufacturing their products from Taiwan. This offered the advantage of reduced supply costs and a well developed logistics channel. In addition, not only that the workforce was cheap, it was...
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