Relocation

What would you do if your company is suffering a huge budget problem and you need to increase your company's revenue? Would you reduce the cost, rise up the price of the product or shrink the business itself? Well, most companies choose to cut the cost by relocating the manufacture to an area of low-cost labor.

Because of the relatively cheaper labor, China has become the manufacturer of the world. Nowadays, it is not surprising that many U.S. companies have made Mexico a major supply chain network because of Mexico’s low labor cost and the close location to the US.

Well, consumers in advanced countries get the benefit of being able to purchase products less expensively. Simultaneously, many people in those advanced countries lost their jobs along with the relocation of the business. It seems like the developing countries are carrying away the opportunities, but the question is who has made the decisions that led to the results of this? Would the answer to this question be the people living in Mexico and China? Obviously, companies’ CEOs have made these decisions; therefore, they might think they are the saviors of the developing countries. They offer new labor markets for the local people; ironically, they don’t realize that they had destroyed the environment and didn’t show respect to the local people.

Since the labor cost in China increases year by year, Vietnam becomes the next target. It seems like the purchasing of lower-cost labor will never stop and the job opportunities won’t come back again.