chapter 8 offshore manyfacturing

Question 1

what is off shore manufacturing ?

Answer 1

the practise of large manufacturing companies / industries relocating their business from one country to another

Question 2

why do companies do offshore manufacturing ?

Answer 2

it’s become wide spread because they can take advantage of cheap labour costs in some countries

Question 3

what are the two biggest offshore manufacturing countries & why?

Answer 3

china- following its accession to the World Trade Organisation in 2001
india - as global communications have improved, so has indias manufacturing capability

Question 4

pros of offshore manufacturing (2)

Answer 4

• companies can use cheaper labour instead of higher wages in more developed countries
• fewer and cheaper costs e.g. energy& labour costs than in the u.k. due to local prices and practises

Question 5

cons of offshore manufacturing (3)

Answer 5

• loss of jobs in home countries of business
• transporting product around the world has high energy costs and creates pollution
• loss of secondary jobs , which are based on providing parts and suppliers to the relocated business