- For relocation We means the transfer of production of goods and services in other countries, usually in developing or in transition. In a strict sense, it refers to a shift of production by businesses located on the territory of one country to other localized abroad.
- The production obtained as a result of this shift is not sold on the market, but was acquired by operating in the country of origin before being sold under its own brand. In a broader perspective, the relocation is a complex phenomenon, at the same time unit, but of a composite. This is a process related to the internationalization of business and providing various forms of execution, from foreign direct investment (FDI) to joint ventures, from outsourcing to subcontracting. The relationships that are established between the parties involved in these processes can be regulated in different ways.
- There are different motivations and benefits that you have in starting a project to relocate. Among others, are worthy of note the reduction of production costs, availability of skilled labour and low cost of raw materials on site, and the ability to create new market opportunities. But there are also risks related to the transfer of production abroad. We must take into account such factors as the risk of loss of control of quality and image, and risks related to the transfer of know-how and, last but not least, the risk country.
- At the base of the business decision to move abroad some or all stages of the production process, there are important assessments to be done. You must understand when such relocation is really an effective strategy, analyze the factors that determine the choice of the country and organizing the production process according to specific technical and environmental potential that each context has to offer. Of course, it is also essential to an understanding of aspects relating to the law of the country, "host“: an assessment of regulatory and fiscal conditions. Moreover, in a context of strong interrelationship of the system, companies may not, in their choice between different forms of internationalization, ignore the decisions that are simultaneously taking other agents (firms and private and public institutions). We, through our network of consultants can accompany you in all these steps!
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