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Moving Factories to Developing Countries

In: Business and Management

Submitted By soleilllllll
Words 2681
Pages 11
Introduction:
In recent years, considering the low cost of developing courtiers, a large quantity of companies in developed countries move factories to these nations for a larger-scale production. When factories are founded in developing countries, these firms take advantage of the cheap labor、low-priced land and abundant natural resources to reduce the cost greatly, thereby, they can chase a higher profit. Besides, this kind of plant relocation brings low-cost countries much needed jobs and assists them developing manufacture. However, the working conditions it provides and wages it pays to workers are not very satisfactory. The phenomenon that employees suffer a bad working condition but only get a little wage still exists. In current world situation, companies and industries are becoming increasingly globalized, then both benefits and problems can appear, moving factories to developing nations is due to it. That firms move factories to developing nations is a win-win event, which can not only bring firms a higher profit but also help poor countries develop many-sided abilities and ease job problems, while a deficiency that cannot be ignored is the poor conditions and low wages majority corporations provide to their cheap labor, and it may affect a harmonious and benignant cooperation.

First of all, this report will reveal the worldwide financial situation and describe the background information of typical developed and developing countries, studying the relationship between these and factories’ moving, and then take Boeing company and Nike company as examples to clarify the benefits that both foreign firms and low-cost countries could get from the plant relocation and point out the shortcomings about workers’ treatment, such as the company systems that aim at labor and the working conditions that are provided to workers. Finally, it will put forward some possible…...

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