More companies produce goods in the factories located in different countries other than the location of the head office. Advantages and disadvantages?

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The import-export system around the world has always been a major
business
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for many countries around the world. Every day more and more
companies
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decide to create products overseas rather than their home country and
then
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import them.
This
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essay will discuss
about
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apply
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the advantages and disadvantages of
this
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strategy and how it
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affects
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effects
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affects
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the economy of the country.
Produceing
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Producing
Produce
goods
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in factories located overseas often
brings
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bring
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many advantages from the
business
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point of view.
Firstly
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, a country like China
for example
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have
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has
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a
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apply
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much
less
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fewer
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labour costs compared to Australia. Provided that,
produceing
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producing
an items
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items
an item
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over there, will cut down the wages even if that item
have
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has
show examples
to be shipped by boat. A recent study conducted by
the
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apply
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Monash
university
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University
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in Melbourne revealed that businesses are able to cut down the costs of
goods
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by at least 75% when investing in
Beijin
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Beijing
.
Secondly
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,
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Chinese
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chinese
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the chinese
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workforce is
second
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to none
although
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the working conditions are often unacceptable.
In other words
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,
by
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apply
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having an immense amount of people working in factories often reduce the time in which the items are created.
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Consequently
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,Consequently
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businesses can produce double
of
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apply
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the
amount
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number
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of
goods
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if produced overseas.
On the other hand
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, there are
also
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disadvantages when
companies
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decide to produce
goods
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in countries rather
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then
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than
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their own one.
First
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of all, shipping time and quality of the
goods
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have always been the major problems that
companies
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had to deal with. When it comes to shipping items, borders often have to quarantine
goods
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ending up in major delays. They
also
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get stored in a not
appropiete
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appropriate
ways and are often damaged and
consequently
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costumer
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customer
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satisfaction is much less compared to local products. To conclude,
companies
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are businesses and as a
business
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identity
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,identity
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they have to cut down costs as much as they can to improve their revenues. Provided that if
i
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I
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were a
business
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owner
i
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I
show examples
would prefer investing in my own countries to be able to give the possibility to my own people to work and raise families.
Submitted by gianlucaspadaitaly on

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