uction of goods to a different country than the one the goods will be shipped to. This is the preferred technique of production used by many countries within the globalized economy. However, there are positives and negatives. This video offers a brief outline of what offshore manufacturing is, and how it has a major impact on the world economy.
Today, offshore manufacturing is more well-known than in the past. 100 years ago most manufacturers of goods resided in the country where the goods would be sold. Today, a company may be headquartered in one nation, manufacture their items in another country, and afterwards sell the product in 30 more.
Offshore manufacturing attracts businesses for various reasons. The biggest reason is that different countries have less labor costs. The practice is frequently criticized for not paying workers fair wages, lacks benefits like time off and insurance.
Offshore manufacturing also happens to ensure that a production site is located closer to the materials that they require. Raw materials cost that are in the country will be cheaper than shipping them into the destination country. You can view the video for more details.
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