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

In the modern era , the manufacturing sector has become one of the leading profit-gaining businesses globally and in order to save more funds a few companies have established their units in countries where manufacturing cost is less due to surplus labour.

Therefore

,

this

trend has many pros.

To begin

with, talking about disadvantages,

first

and foremost, the negative outcome is that the managers are required to negotiate with the rulers of other nations for land procurement and the environmental norms that are being framed for their own good. To exemplify, Nike once tried to start one of its factories in Vietnam but the local authorities denied their request because Nike was not fulfilling the laws that were made to protect nature.

On the other hand

, taking account of positive outcomes,

firstly

, new employment opportunities are being created that would transform many lives and help people financially especially in

third

world countries.

Secondly

, it would help to control inflation because if making cost will be less

then

the product's MRP would not increase. To illustrate, Maruti Suzuki established their production in India and due to

this

, the cost of different car models of Maruti has seen a slight price change over the years.

Hence

,

this

trend is advantageous. To conclude,

although

the initial investment is large for the owners and finding the right place in a foreign land is difficult , it would be helpful in the generation of new jobs and keeping the product affordable for

the

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consumers all over the globe.