unemployment in unites states http://youthcm.com |
Youth Career Management (YCM) reports that: There are 2 ways of production abroad can be moved. The first way is closing a plant in the Netherlands and simultaneously opening a similar establishment in Indonesia for example. This form of displacement occurs mainly in multinationals. A multinational is a company with production facilities in several countries, such as Philips, Coca-Cola.
Second, it may be that such companies from the Netherlands are driven out by companies from low wage countries.
Moving production abroad is related to the competitiveness of a country compared to abroad. Under competitive we mean the ability to better and / or cheaper to produce than competitors. The main weapon in the competitive struggle is the price. The price depends on the costs besides playing competitive prices, quality and infrastructure as a role.
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