Leading offshore financial centres: tax, regulatory and other competition is healthy because it keeps bigger, others argue that ofcs may be inevitable concomitant of globalization. Hedge fund management countries" government from getting bloated: 1 in 6 of the world"s largest companies are based on tax haven. Most attractive financial centres for relocating/expanding asset management operations: aggressively managed portfolio of investment strategies such as leverage, 1st london, 2 hong kong, 3 singapore, 4 new york. Internationalizing processes: simple extension across national boundaries, quantitative changes leading to more extensive geographic patterns, globalizing processes, functional integration of internationally dispersed activities, qualitative changes in ways economic activities are organized. Production chains: all production processes have at their core 4 basic operations, inputs, transformation, distribution, consumption, 2 sets of flows, materials and products, information. Transportation problem: 3 warehouse, 3 consumption points, all warehouse connected to consumption points.