Foreign Direct Investment, Outsourcing, Spatially Fixed and Variable Costs: FDI investment of international (non-domestic) lower cost manufacturing plants/facilities. Outsourcing definition: "Home" company contracts out some production and/or services which are either lower cost or they lack the capability of providing. Spatially fixed costs: Same cost regardless of geographic location. Spatial margin of profitability: Companies identify specific geographic locations to market/distribute products which will satisfy their minimum acceptable profit margins.