9.3b Off-Shoring and Re-Shoring Flashcards
1
Q
Disadvantages of manufacturing in the UK:
A
- Cost of energy
- Labour costs
- Skills shortages
2
Q
Offshoring definition
A
The relocation of a part of a business from one country to another
3
Q
How firms benefit from offshoring:
A
- Lower costs of production
- Access to wider labour market
- Local government support
4
Q
Ways offshoring is a risk:
A
- Customer service
- Higher than expected costs
- Public and employee relations (they may not agree with decision)
5
Q
What is reshoring?
A
Bringing back some or all of manufacturing activity to the ‘home’ country
6
Q
What are the main reasons for reshoring?
A
To improve:
- Quality
- Reliability
- Customer service
7
Q
Why do UK manufacturers believe that reshoring is viable?
A
- Speed to market is becoming more important
- Greater importance of meeting deadlines
- Quality is more important for smaller businesses
8
Q
Reasons to reshore back to UK:
A
- Cost advantage is not as significant abroad as it used to be
- Shorter delivery times
- Quality
