- Messages
- 23
- Reaction score
- 2
- Points
- 3
Could i get full marks for this? I got it from here, and here's mark scheme.
3. (b) Labour costs are much lower in other countries. Many sports shoe manufacturers
produce in those countries. Consider the advantages and the disadvantages to KSS
of manufacturing its football boots in another country. Do you think KSS should move
manufacturing to another country? Justify your answer.
Advantages:
Cheaper because they are using cheaper labour so they can get more profits. They can get more sales because if they are making the shoes cheaper then they can sell them cheaper thus making more sales and their market share.
Disadvantages:
To import the good back into the country would cost money because of import duties. Also other import tarifs could limit the amount of shoes they are aloud to import in, thus the amount of sales they can make in this country are limited.
Conclusion:
I would sujest moving the protduction to another conrty because the import duties aren't that expensive and the import limit is quite high, so its not that limiting. And the cheap labour in the other country would be well worth it.
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