What Are The Advantages Of Global Production?


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Nouman Umar Profile
Nouman Umar answered
There are many advantages which the companies can avail by production of its products globally. Which includes cheap labor cost every country have its own preferences and the standard rate of living set he governments are different in different countries. So the companies are getting benefit of the cheap labors which is available internationally. The second thing is cheap raw material companies prefer to put their production plants in those countries where the raw material is easily available and cheap raw material can be obtained. The other benefit the organizations can have is availability of skilled labor the companies like to move in those countries where the people are highly skilled so that they can make better and competitive products. The global displacement of those activities are not only adopted my the big companies but there are many small companies who are striving to go to multinationals are also adopting these policies of global production to get the maximum benefit.

Some companies just put their production in those countries where natural resources like oil, gas and other minerals are easily available the advantage of this to those companies they can save the transportation cost and they can easily access the raw material to make its finished products.

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