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As a company grows beyond its national borders, it starts exporting its products. It first establishes foreign sales organizations, followed by manufacturing operations, which are usually driven by labor or other cost considerations. The next step is product marketing and localization, often coupled with building local product design centers. The last stage of this globalization or transnationalization is to start research efforts in the foreign country, complementing existing sales, manufacturing, marketing, and development organizations. Why is global research and development desirable? Is R&D necessary outside of a central research laboratory in a company's home country?