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I'd say the two go hand-in-hand. The idea of separating them is recent, and not "better". The user may be overseas from the manufacturer, but the combination of engineering/manufacturing being in the same place is a one-two punch that other combinations lack. And always will. Who for example, will examine failures? And right them? Etc. Specific geographic concentrations of people have historically been the strength behind plenty of products, be it the modern example of Silicon Valley, or older, as with Bruges, Belgium.
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