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Pros and cons of opening an offshore distribution center

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What are the economic advantages/disadvantages, for the US speaker company Bose, to start a distribution center in the Czech Republic?

Addressing its political, economic, socio-cultural environment as well as, tax, labor wages, currency advantages/disadvantages

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The Czech Republic is an emerging market, and as such will confer great benefits on companies who can establish a foothold.

Take a look at this very recent analysis from the Economist:

"Growth in the Czech Republic used to lag behind that of its peers in eastern Europe. Now it surpasses theirs. The country's sound monetary policy leaves it well placed to join the euro as planned in 2010, according to the OECD's latest survey. But the improvement in the country's fiscal fortunes reflects luck more than judgment. Tax revenues were stronger than expected and spending was deferred, not cut."

So, the question as I see it, does it make sense to have a distribution center in the Czech Republic rather ship to the Czech Republic from the US? I was surprised at the variety of information written about this subject. However, some of it is conflicting.

I found it useful in this situation to define "distribution center."

The most advanced set of practices are applied to incoming shipments that can ...

Solution Summary

Pros and cons of opening a distribution center in the Czech Republic