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locating manufacturing facilities abroad

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The organizaiton has considered moving thier manufacturering operations internationally to cut costs. They have asked me to discuss the dilemmas (financial, ethical, or personnel) and discuss which types of dilemmas (financial, ethical, or personnel) are the most difficult to solve for thier organization. They want me to tell them why I came up with the answer?

I have to present my findings in a ppt to the mangement team and I do not know what to consider or where to start or what discussion I should even add to this. Can you help me understand this?

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This response presents a brilliant discussion on locating manufacturing facilities abroad

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Dilemmas:

Financial:
The financial dilemma of locating manufacturing facilities abroad is that even though the costs of the company may come down, there will be an outflow of investment from the country. Further, even though the firm is locating manufacturing facilities abroad because there is need to reduce costs, there can be hidden costs that might increase the costs and make locating abroad meaningless. Finally, the decision is to locating manufacturing facilities abroad but the dilemma is that because of difference in standards, the goods produced abroad may be of a lower quality.

Ethical:
The company is locating manufacturing facilities abroad; the ethical dilemma is that this will lead to loss of employment in the country. ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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