Question 2

You are the production manager for a global business with assembly facilities around the world. The business has tended to manufacture in the home country, a developed one, with the assembly of the products taking place in a strategically located country in each of the major groupings of markets. You have been asked to look at relocating some of the production of the older product lines in some of these assembly facilities and using them as production plants. Traditionally production has worked closely with research and development in the home country. Your changes need to reflect the fact that sales have fallen in the home market with increased competition. At the same time, key markets around the world are booming. "Home or abroad?" is the question and the potential future of the business is in your hands.

With demand low in the home country, why might it make sense to relocate production to a developing nation?

How would you consider the manufacture of maturing products? Would you consider moving production elsewhere?

What are the advantages and disadvantages for the domestic production facilities of moving production abroad?