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This software is to accompany the case. This case describes the dilemma of the CEO of Reddigton Transmission Incorporated, a US based company into manufacturing transmissions for automobile applications with operations in Europe and Asia Pacific. Reeling under the twin pressures of keeping the cost under control and satisfying the customers he was considering a proposal from the head of Indian operations to bring the manufacturing of a major product to India from its global manufacturing hub in Germany. The contention was that it would reduce the material cost for the growing Indian customers’. The German Head of operations was having apprehensions about this proposal due to possible redundancy in the plant as this would mean shifting a substantial volume from his plant capacity to India. The CEO was discussing the financial implication of this proposal with the Head of finance & control and that would help him make the decision which would keep up the aspirations of the investors and analysts in terms of profitability at the same time keeping the managers motivated and make contributions at their level.