Question

Research a USA company that recently moved a corporate headquarters or factory or research and development center from the USA to another country.

(a) What were the advantages and disadvantages of the company in their offshoring decision?

(b)Develop a government-based incentive system to keep this offshoring from happening.

Answer 1

(a)

Amid COVID-19, Most of the MNC's are deciding to shift their manufacturing from China to India. One of that, Apple Inc recently decided to shift some of its manufacturing units to iPhone in India The main advantage of this decision will be that the company can benefit from establishing a manufacturing unit close to the market as India is one of the biggest iPhone purchasers. In India the output rate would be lower. Apple Inc. is being supported with several policy opportunities to build the production facility. The human capital and the raw material should be freely accessible

Downsides such as This will raise the degree of unemployment in the USA. There's a risk of losing intellectual rights if any important product-related material comes viral. India 's rising conflict with its neighboring countries would create a negative climate. The nation can face a conflict between the American and Indian working cultures

(b)

The government incentive plan could be as a tax rebate can be offered to the company by the US government. The Government will promote cheap land off the manufacturing unit for the establishment. For a certain number of years , the Government can provide duty-free exports. The government can facilitate better training centers so that the company can obtain the necessary number of talented employees and finally the company can also provide the company with subsidies.

****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****