Nowadays many companies have manufacturing facilities in different countries. Does this development have more advantages or disadvantages?

It is being observed that many firms nowadays are more interested in having manufacturing units in various

nations

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. Ostensibly,

this

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trend has multifarious benefits to

companies

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in the form of saving a huge cost of transportation across the borders and generating mass employment for other

nations

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.

To begin

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with, the facilities of

production

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in different

nations

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are conducive for

companies

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in order to save the cost of

custom

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customs

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duties to transport goods in various

nations

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. To explain, there are many licenses and certificates that

companies

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have to obtain before

Correct article usage

the import

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import

Wrong verb form

importing

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or export of goods from one country to another and

this

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process involves a lot of money which can be saved

this

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way. In fact,

this

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trend of shifting

production

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hubs can generate a considerable number of

employment

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employees

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in the nation where

companies

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set up these hubs.

Thus

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, an increasing number of people get opportunities to be a part of international firms due to

this

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new system.

In addition

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, when

companies

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set up manufacturing units in other

nations

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, they can generate their products as per the demand of that area.

This

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may incredibly increase their profit and goodwill among customers due to

quick

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the quick

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delivery of products. A survey conducted by The Guardian newspaper in March

,

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apply

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2015 revealed that 75% of

companies

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had been setting up more

production

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facilities in different

nations

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since these made them able to increase the growth of their business tremendously.

Furthermore

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, a section of society has raised a concern

of

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about

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involvement

Correct article usage

the involvement

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of huge funds at the time of installation of a totally new

production

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unit in other countries as it requires many essential factors to be done

such

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as land, electricity connection and approval,

transportation

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the transportation

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system of that area and permit to transport goods within a country.

Hence

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,

installation

Correct article usage

the installation

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of a new

production

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unit in another country is a herculean task for

companies

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which not every company can afford.

Moreover

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,

lack

Correct article usage

the lack

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of

a

Correct article usage

apply

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proper administration can be another issue in

this

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system. To clarify, when

companies

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have manufacturing units in different

nations

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, they may require reliable and good staff to provide exact reports to head office timely.

For example

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, lack of communication and false presentation of data can be harmful

for

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to

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companies

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. To conclude, it is unequivocal that the idea of having manufacturing facilities in various

nations

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by many

companies

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is having more advantages than its disadvantages.