Why to Manufacture Goods in Foreign Country

Mostly the multinational companies who are very vast in area and in staff vise as well, has its branches in different places from city to another city, state to another state and then country to another country.

These different located branches goods are manufactured locally or where the branch exists they start the production process at there or on spot not the from the main branch or parent branch, there are so many reasons behind that manufacturing few are discussed here.

When a company forecast its expenses with the parent country with a country where the new branches are established probably they found it in much cheap rate for manufacturing due to low tax, the low wages, and also with some conditions of state as well.

A company whose origin is in Europe and has its branch company in Asia there are so many chances that they establish their manufacturing plant in Asia because in this way they will only not reduce their cost but also the availability of products will be easy and in quick time as well.

European company management will pay the Asian employees with their local currencies and the rate of salaries in the Asia is not so much as compare to European countries, local currencies are cheaper than the dollars, in such a process the cost production can also be reduced.

For the more sale and good profit for a company the management must understand some facts that only local individual can lead your company to new heights and let you to earn more than enough.

Local manager must be given authority to decisions as they know there conditions of ground more than the management sitting in the origin country, local hiring of employees will also encourage the trust of local people with your company as they will own your company.

Before the establishing any branch to any country or area the origin country must do survey before the commencement, the product design and quality has to be change according to the preference and affordability of the local peoples.

It is not necessary that the a track suit which is of A company which has super quality and very good money is charged by the company for that track suit in Europe, the same product with its same quality and price is charged here, there are some differences that management need to understand these can be the purchasing power on individual, culture and so on.

Leave a Reply

Your email address will not be published. Required fields are marked *