38.1k views
1 vote
Suggest four reasons a company might state to justify manufacturing a product

overseas and shipping it over a long distance to consumers.

1 Answer

0 votes

Answer:

1) Reduced production cost

2) Improved service delivery to customers

3) Gain competitive advantage in the business

4) Get skilled expertise in the production of the goods

Step-by-step explanation:

1) Reduced production cost

Companies manufacture product overseas to lower production cost which may include lower insurance, infrastructure and labor costs

2) Improved service delivery to customers

Manufacturing products overseas enables a company to provide quality products to their customers by gaining access to the skill and expertise of their overseas partner which enable the company to supply good quality products to customers in less time

3) Gain competitive advantage in the business

By manufacturing products overseas, the company is able to provide improved service to the customers while increasing production which increases customer satisfaction and loyalty

4) Get skilled expertise in the production of the goods

Manufacturing products overseas enables a company to improve their product quality in comparison to other local competitors at lesser cost by imputing current skilled expertise into the production of their goods which will see the goods having increased utility and advantage.

User Borice
by
5.7k points