The second variation is the Integrated Sourcing Initiative (ISI). Under the USSFTA, the ISI applies to non-sensitive, globalised sectors,such as IT. Under the scheme, certain IT components and medical devices are not subject to rules of origin, when shipped from either of the Parties to the FTA. The scheme reflects the economic reality of global distributed production, and will encourage US MNCs to take advantage of each ASEAN country's relative comparative advantage.