Question

Is it better for your economy to produce goods at home, or is it preferable to move production overseas so that consumers may pay lower prices? What is the effect on developing countries of these shifts in production? Is it better for to create jobs in these areas? How should concerns about labor and environmental standards be taken into account?

Answer 1

For any country, their economy play a vital role to become a developed country. This economy can measure by people's jobs, manufacturing plants, income and Production units. So, the production unit is very important for the economy of the country. Any country or political leadership always wants that any product or goods is made in his country. which can generate income for the country. Some of the benefits of producing goods at the home country as compared to overseas.

• By producing in the home country can create a job opportunity for the people.
• Increasing the tax income.
• peoples get the product in less price as compare to overseas countries. Because import duty/tax and transportation cost can increase the price of the product.
• People's income will increase in working in the production plant.

By seeing these benefits we can say that we have to produce the products in home country. Because it is highly beneficial for the economy and countries people as compare to importing from overseas market.

If these production plant can shift to another country. It's a huge loss for the country as people loss their job, income, Government don't get tax, Price of the product may increase and most important. It may effect the economy. So, for the developing nation. Producing the goods in home country can be beneficial for the people and economy. By producing in home country. Company and government can create a job. which help the people to increase their income. But, also government of the country must have to make the strict laws. Like labors law and environmental law. So, that right of the labour can be affected. Also, government have to penalized the production industry. Who break the laws and affect the environment.