Abstract
Overseas operations in such industries as automotive or electric appliance manufacturing usually start from export of completed products and then proceed to CKD assembly followed by the final stage, or localization of parts manufacturing. Recently, governments of developing countries are trying to put more pressure on CKD assemblers to localize the parts by establishing "minimum local content ratio". This research focuses on two major problems, or "selection of localized parts" and "product mix", which assemblers have to face in adaptation programs. This paper describes the basic structure and characteristics of the problems and reports some findings on the first problem.
