Essay about Global Economics
At the beginning of the 90s, the two most fundamental determinants of competitiveness in footwear production were considered to be, production costs and the differential impact of trade barriers. At that time other, less quantifiable factors that influence competitiveness were considered to be the following: technological developments; proximity to major markets and …show more content…
Manufacturers from the United States and other developed countries began to outsource production from independently owned factories in the 80s, when international financing was made available to develop factory facilities in developing countries.
There are many advantages in outsourcing for already established manufacturing enterprises managing export markets: increasing capacity and flexibility without investing, specialization, reduced production costs, reduced delivery times and provision of opportunities to experiment with new production lines and suppliers without having to take financial risks. Generally, costs involved in the production of new samples are absorbed by