Abstract
Many companies operating in developing countries under the regulations by Local Manufacturing programs are facing a new set of decision making problems. The previous reports of this research examined two basic problems namely "optimum selection of the localized parts "and "determination of the optimum product mix "from local firms' view point. This paper firstly reexamines those problems from the view point of advanced firms, or exporters CKD sets. Then an approach to adjust the conflict on profit between the two sides is proposed.
