International subcontracting is an important form of investment for Italian clothing firms, which has been favoured by a long experience of domestic subcontracting It implies no equity in the local firm, and means low switching costs and reduced risks related to the political instability of a country.
On the other hand, the technology revolution is subverting Factory Asia, which is based on
international subcontracting initiated by the multinationals in car, electronics and so many industries.
They then offer description and analysis of the various modes, covering franchising, licensing, management contracts,
international subcontracting, exporting, alliances, and foreign direct investment.