Lower Production Costs One of the main advantages of opening a production facility in another country is the reduction in manufacturing costs. Millions of people have to go to bed without food. Imagine that you do not have a dishwasher. The Americans have good food to eat, enjoy a luxurious living as compared to the people belonging to South-East Asia. Rise in the number of vehicles and industries have badly affected the quality of air.
In addition, the standard of living also increases with better opportunities. They are to a great extent responsible for low rate of saving, low rate of investment and low rate of capital formation. Correspondingly, the labour force engaged in agriculture has increased. For instance, farmers use well-established methods to compete in the marketplace, but most of the innovations in farming come, not from farmers, but from the government and from technology companies that develop specific products for farming, such as the development of new seeds. These lead to loss of biodiversity, air and water pollution and increased pressure on land. Here is when you learn that the bookish knowledge of the university does not apply in your everyday work or workplace at all.
There will be pros and cons of Cost of Living in China as China is a big country and difficult to maintain. I think it is a great curse for the development of trade and its growth. Within a period of a little over half century, population of India has tripled to cross one billion marks. Superiority of Market: Multinational companies have a security of brand reputation and this is why they face fewer issues in selling their products by adapting to an effective advertising and sales promotion methods Campbell, Eden and Miller 2012. Increase in Unemployment: With rapid increase in population, the most daunting task in India is to provide employment not only to the growing labour force every year, but also to reduce the backlog of the unemployed from the previous years. In addition, people from these countries are self-reliable when it comes to the self-security.
About 3000 villages are without any source of drinking water in India. Adverse Effects on Saving, Investment and Capital Formation: One of the most serious effects of rapidly increasing population is on saving and investment and the rate of capital formation in the country. Due to foreign competition and unrestricted imports, the upcoming industries in the country may collapse. China has a total population of 1,344,130,000. Patents can not only give to a single firm but it can also give market power to an through cross licensing of patents.
This high burden of dependency reduces the capacity of people to save. You might also have to deal with a culture of bribery and organized crime, with little or no law enforcement able to help you. On the home country: 1. Firms from developed countries will be able to sell goods at cheaper prices and higher quality since they are more mature and have access to better tech thus local producers may face problems. This can reduce the savings you achieve by moving production overseas.
Some developing countries follow the traditional western model, however some dislike being the follower of this tradition. Increase standard and job opportunity from different land: Well, you must have learned this earlier that international trading markets have expanded a lot, into a huge overseas business, over the decade. Several although have ocean access through navigable rivers Rhine; Danube. Acquisition of raw material from abroad,which is cheaper in cost. These giant corporations can dominate the industries they are in because they have better products and they can afford to even offer them at lower prices since they have the financial resources to buy in bulk. This leads to production at large scale and the advantages of large scale production can be obtained by all the countries of the world.
Low Per Capita Income 3. Inappropriate Technology: The use of technology by the multinational company may either be out of date or too advanced for the host country to follow. With rapidly rising population agricultural holdings become smaller and un-remunerative to cultivate. In the long term, the world will have to come to terms with the fact that we are consuming at a faster rate than nature is able to produce right now. While it is true that in the twenty-first-century countries like Japan export their culture to levels they had never imagined in the Meiji Period , it is also true that Latin American populations adopt cultural precepts and set aside their own. The first of these is the depletion of resources. Journal of International Business Studies, 45 8 , pp.
India, for example, has been introducing family planning programs to curtail the growth of its population. This gives scope for improvement as well as they can pass on their knowledge to join a humanitarian cause. It is because developed country gives more advantages and a better standard of living. Limited quantities quotas of imports. Inadequate facilities, such as housing, medical etc.
With the growth of big towns and cities to accommodate growing population, there has been water pollution. Then, a land locked country is less advantageous when it wants to appeal to a development strategy based on foreign trade for example, export oriented strategy like that of Republic of Korea. This increases the gap between the rich and the poor as there is increase in the overall unemployment of the country. During the Ninth Plan, the growth of labour force had been estimated at 2. Unfortunately, they were able to leverage U. They are supported by their families. However, a massive population shift is also under way as hundreds of millions of people are moving from rural to urban areas, fueling rapid urbanization, with its own attendant problems.
Brought to you by Shipping Concerns When you produce goods outside the country, you introduce a host of costs and issues with shipping and distribution, including customs, taxes, logistics and time delays. International corporations can range from car manufacturers to food chains that exist, a result of globalization, with consumers and profit in mind. As a result, you would develop a sense of gratefulness for life and whatever you have will satisfy you. For a new invention to be successful, the product must offer greater utility for its price. Less developed countries are countries considered to be poor and often contain many people who are in absolute poverty.