The Increasing Trend for UK Companies to Relocate to Lower Cost Locations Abroad
For this report I will be answering this question, which is:
Explain the increasing trend for UK companies to relocate to lower
cost locations abroad. Is this the only strategy that UK businesses
should follow when dealing with price competitions?
For the information I will be using the exodus abroad from the
Business review as proof of evidence. [1]
It has been in the papers over the past few years that companies have
been leaving the UK to move there company because they were either
losing profit or there product/service wasn't doing very well.
Business companies thinks that moving to another country like China
because running the company there is cheaper than the UK because it
doesn't cost a lot to build in that country that if they move that
will make employees that already work in that company redundant which
will not be faire on the people that worked for that company for
years. But there has got to be another way than moving or merging with
companies in another country, like they could ask there customers what
they think the company can improve on to increase there profit.
Over time there will be more UK businesses in other countries to help
their employment but what about the UK people that are looking for
jobs and has to travel possibly to another country to work, it would
that those people will miss there family and friends and they have to
get property (work permits for working other in that country) over
there and try to come home for holidays which will not be faire on the
parents with young children.
A survey was done by the engineering employers federation that found
out that one in three companies was planning to increase its
proportion of foreign production over the next 5 years. This means
that the more companies that move the more people that are unemployed
in the UK and more firms are doing this at the moment.
There are several reasons why companies relocate to other countries
After their arrival at Parris Island, the civilians are not allowed to step outside the controlled environment until they graduate
one thing but sign their hearts out for us. That's why it's a sin to
Outsourcing has only very recently become an issue in the United States, and as a result it has become a very popular political issue during campaigns for presidency. Outsourcing is the idea that a company will subcontract to a third party, usually outside of the US, for various parts of its business structure. An example of this and perhaps the largest source of outsourcing is call centers for tech support, where a company will subcontract to a third party and that party will build up the call center and hire the workers for it. Many people have been affected by outsourcing since it started being used widely in the 1980s, and most would argue that outsourcing is not a good business model, that while it not only negatively affects them, it affects the whole economy. While there are some unmistakable positives to outsourcing, I would argue that as a whole, the negatives far outweigh the positives and outsourcing is bad for the United States.
Outsourcing is when a company or business decides to contract part of their services that they do not do well to an outside company. There is two types of outsourcing offshoring and nearshoring. Offshoring is where a company outsources abroad and, nearshoring is outsourcing within the home country. The reasons that a company decides to outsource varies from company to company but, the most common ones are cost reduction, increasing globalization, growth , tax incentives, government support and access to new markets. However there are some key challenges that come with offshoring and those key challenges are quality and labor retention. ( Bacon, 2007 p 38-39). Asian outsourcing began as early as the 1960’s (Espana 2013 p 3). Some people argue that offshoring is good for the economy even though it’s a well know fact that offshoring has a negative effect on the economy, there is wage differences and the unemployment rate increase.
it will be a long time before they get back to the country they were
our piers? If you choose to, that is one thing, but being force to hide
with refugees to help them receive all the social services and support necessary for them to
to return to their homeland for sometime but are not aware of the limitations of TPS. “ In
international business involves all business transactions that occur between two or more areas, nations and countries past their political limits. Generally, privately owned businesses embrace such transactions revenue driven; governments attempt them for benefit and for political reasons. It alludes to every one of those business exercises which include cross outskirt transactions of products, administrations, assets between two or more countries. Transaction of monetary assets incorporate capital, aptitudes, individuals and so on for global creation of physical merchandise and administrations, for example, account, keeping money, protection, development and so on.
Firms Faced with Rivals and Advantage of Location The location of firms depends on factors such as cost, quality of inputs and even their availability. These factors can vary from place to place so this gives firms an incentive to locate in the lowest cost locations with other things being equal. The location for most firms is highly dependent on labour costs and raw material costs as these are naturally less mobile place to place and almost completely immobile country to country, capital does not have as much effect on the location of a firm. Differences in labour costs are one determinant of location but on a regional scale in the UK there is not a substantial difference. The importance of raw materials as a factor determining location can be a problem as on some occasions the availability of raw materials dictates the location of a firm e.g. coal mining.
In today’s global market, more than before, multinational enterprises [MNEs] have been expanding their operations internationally. This rapid growth requires suitable staff to run new units in foreign countries. Leadership of these new units and MNEs in general requires a global mindset. “Each unit requires executives that navigate economic complexities, cultural ambiguities, and political challenges” (Daniels, 2013) while running an efficient and productive unit. MNEs need staff with international business background and understanding in order to have a successfully operated unit. There is shortage of leaders for the world stage. There are many reasons on why pursuing international business is the right thing to do, tremendous growth potential and high demand are to mention two. There are benefits to be a leader of an international business unit such job satisfaction and better life experience. On the other hand, there could some down fall from being away from home such as being forgotten by the home office and being downgraded once coming back home and high rate of turn around.
In the other side on hand, people in the nation are obligated to leave their nation because can’t articu...
Global business is widely growing and increasing day by day, it has indeed manufactured benefits to both world and individual economy of a country. It plays a vital role to make it sustain in the long term profitability and also helps to improve interconnection between countries. Tourism business is however inter-related with world business and economy as it contributes a large amount of money exchange and also cuts the boundary of cultural and social backgrounds in other words the world has become local to everyone through tourism and globalization. Tourism in other words is a business which has grown globally and has become popular by marketing its products and aquatics every where around the world.
The marketing team of International Consultants Inc. (ICI) began an analysis of the feasibility of expanding the sales of American Training Incorporated (ATI) products into international markets. Mexico and Canada appeared to be the logical initial markets; however, the study showed that other Latin American country should also be considered further
Our world is becoming increasingly connected and global and the role of international business is increasing. Each country has its own set of unique customs and traditions. Each citizen's beliefs define the cultures by which each citizen abides by in normal everyday life, thus serving as the very foundation of the country. For example, in Saudi Arabia a citizen convicted of stealing will have his hand cutoff. In the United States, a citizen convicted of stealing would possibly receive only short term probation. The American Heritage Dictionary defines culture as, "The totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and thought characteristic of a community or population." Seemingly minuet gestures or situations which carry different meanings in particular cultures can make or break business deals. Global managers from the United States or from any other nation have to be aware of the various cultural differences. Injecting certain specific skills, such as diversity training for expatriate managers, will bridge the gap between cultural differences such as language, religion, and values.