Offshore/outsource

Question 1

Offshore meaning

Answer 1

Set up factories in another country, factory owned by business so quality is assured, cheaper production

Question 2

Offshore benefits

Answer 2

• takes advantage of local manufacturing expertise
• new buildings and infrastructure is needed in developing countries for workers and factories
• jobs initially were repetitive and low skilled, now all kinds of knowledge work
• manufacturing is completed almost anywhere
• cost is the biggest driving force for offshore production
• companies can expand more

Question 3

-ve’s for offshore

Answer 3

• unemployment could increase in developed countries
• developing countries workers could be exploited
• brands don’t want to be associated with poor wages in developing countries
• local workforces loose traditional skills and become reliant on unskilled labour

Question 4

Outsource

Answer 4

Can be domestic or overseas. Can be cheaper as no set up costs

Question 5

Advantages of global manufacturing in developing countries

Answer 5

• ergonomic regeneration in local area
• improvement in living standards
• physical regeneration of local area
• transfer of technology
• widening of countries economic base and enabling foreign currency to be brought into the country, which improves their balance of payments

Question 6

Disadvantages of global manufacturing in developing countries

Answer 6

• increased pollution and waste production
• destruction of local environment
• lower wages than workers in developed countries
• promotion restrictions, higher up roles given to employees from developed countries
• no unions for equal rights issues
• lower safety standards when using sweatshops
• devaluing of traditional craft skills
• local community can become dependent on multinationals