9.3b - Off-shoring and Re-shoring Flashcards
1
Q
Disadvantages of manufacturing in the UK:
A
- Cost of energy
- Labour costs
- Skills shortages
- Planning regulations
2
Q
Off-shoring definition
A
The relocation of a part or the whole of a business from one country to another
3
Q
Advantages of off-shoring:
A
- Lower costs of production
- Access to wider labour market
- Local government support
- Closer access to raw materials and supplies
4
Q
Disadvantages of off-shoring:
A
- Customer service quality
- Higher than expected costs
- Public and employee relations
- Protection of IP (legal protections are not as strong in other countries)
5
Q
Re-shoring definition
A
Bringing back some or all of manufacturing activity to the home country
6
Q
Why is re-shoring to the UK happening?
A
- Speed to market is becoming more important
- Greater importance of meeting deadlines
- Quality is more important for smaller businesses
- Cost advantage is not as significant abroad as it used to be
7
Q
Advantages of re-shoring back to the UK:
A
- Shorter delivery times
- Minimise risk of supply chain disruptions (reduce complexity of supply chain)
- Quality
