The import-export system around the world has always been a major business for many countries around the world. Every day more and more companies decide to create products overseas rather than their home country and then import them. This essay will discuss about the advantages and disadvantages of this strategy and how it effects the economy of the country.
Produceing goods in factories located overseas often brings many advantages from the business point of view. Firstly, a country like China for example have a much less labour costs compared to Australia. Provided that, produceing an items over there, will cut down the wages even if that item have to be shipped by boat. A recent study conducted by the Monash university in Melbourne revealed that businesses are able to cut down the costs of goods by at least 75% when investing in Beijin. Secondly, chinese workforce is second to none although the working conditions are often unacceptable. In other words, by having an immense amount of people working in factories often reduce the time in which the items are created. Consequently businesses can produce double of the amount of goods if produced overseas.
On the other hand, there are also disadvantages when companies decide to produce goods in countries rather then their own one. First of all, shipping time and quality of the goods have always been the major problems that companies had to deal with. When it comes to shipping items, borders often have to quarantine goods ending up in major delays. They also get stored in a not appropiete ways and are often damaged and consequently costumer satisfaction is much less compared to local products.
To conclude, companies are businesses and as a business identity they have to cut down costs as much as they can to improve their revenues. Provided that if i were a business owner i would prefer investing in my own countries to be able to give the possibility to my own people to work and raise families.
The import-export system around the world has always been a major
business
for
many
countries
around the world. Every day more and more
companies
decide to create products overseas
rather
than their home
country
and then import them. This essay will
discuss about the
advantages and disadvantages of this strategy and how it effects the economy of the country.
Produceing
goods
in factories located overseas
often
brings
many
advantages from the
business
point of view.
Firstly
, a
country
like China
for example
have a much less
labour
costs compared to Australia. Provided that,
produceing
an
items
over there, will
cut
down the wages even if that
item
have to
be shipped
by boat. A recent study conducted by the
Monash university
in Melbourne revealed that
businesses
are able to
cut
down the costs of
goods
by at least 75% when investing in
Beijin
.
Secondly
,
chinese
workforce is second to none although the working conditions are
often
unacceptable.
In other words
, by having an immense amount of
people
working in factories
often
reduce
the time in which the
items
are created
.
Consequently
businesses
can produce double of the amount of
goods
if produced overseas.
On the other hand
, there are
also
disadvantages when
companies
decide to produce
goods
in
countries
rather
then
their
own
one.
First of all
, shipping time and quality of the
goods
have always been the major problems that
companies
had to deal with. When it
comes
to shipping
items
, borders
often
have to
quarantine
goods
ending up in major delays. They
also
get
stored in a not
appropiete
ways and are
often
damaged and
consequently
costumer satisfaction is much less compared to local products.
To conclude
,
companies
are
businesses
and as a
business
identity they
have to
cut
down costs as much as they can to
improve
their revenues. Provided that if
i
were a
business
owner
i
would prefer investing in my
own
countries
to be able to give the possibility to my
own
people
to work and raise families.