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Lower cost of production

Capitalism

Cheaper Labour

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Due to lower costs of production and cheaper labour

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Due to reduced labour costs, fast fashion brands like Zara/h&m choose to manufacture their clothing in China/india/Bangladesh due to lower wages for workers

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cost efficient, space availability, skilled labour, lower costs, economies of scale

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Cheaper to produce - they often produce in china or Bangladesh because the minimum wage is lower. To save money and retain the profits the companies make they choose to produce in these types of places.

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economies of scale, greater brand visibility, brand awareness and brand equity, cheaper labour cost, fewer protectionist policies

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specific locations can have advantages on the production. More economies of scale and lesser unit cost

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Some companies may produce products in different countries due to cheaper costs and labour. For example, Bangladesh with Zara.

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Companies choose to produce goods in certain places because the cost of labour and tariffs may be lower. There may also be skilled labour available which could benefit companies who create complex products.

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cheaper labor

less stringent tax regulations/laws

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Businesses choose certain locations for production because of labour costs (unskilled labour), cheaper raw materials, lesser taxation on certain goods/ services.

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more economies of sale

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Companies prefer to operate businesses that require intensive labour in countries where labour prices are cheaper

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capitalism; money makes the world go round

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Ananya

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Mannuj Shroff