In this chapter, we discuss the partial dispersion of manufacturing facilities and offshore production. It is better to locate most suppliers and manufacturers in close proximity at the beginning of the life cycle. However, as time passes, companies start locating assembly facilities in the other advanced countries for sales promotion and, sometimes, cost cutting. It becomes desirable for the manufacturers to avoid trade friction and to penetrate foreign markets quickly. The standardization of the product including the modularity of the parts makes it possible to do so. The partial dispersion at the standardized stage of the VCR industry is demonstrated in the latter part of this chapter.