Assignment task:
We know that industries play an important character in the development and growth of the economy. Through the success of industries, it can shift manufacturing to other countries also. In the U.S, industries like textiles and clothing have shifted their manufacturing elsewhere. There are many reasons for this shift, one reason is that in the modern world many companies have been established which are producing the same type of products (Globalization changes the face of textile, clothing and footwear industries,1996).This will affect the profit of the companies, so companies will find other ways to increase their profit. People have so many choices in front of them.
Opportunity cost is the cost of the next best alternative for a product or a service. If a product is not liked by a consumer, they can try other products with the same characteristics. In doing so industries try to enlarge their production to other countries, so it will help them make a profit. The interest and taste of the consumer will also change so the industries must change their location. By doing this they can try the product to new customers. If the demand for the product is high, the industry will shift manufacturing to other countries. The cost of production will be lower in developing countries than the developed countries. So, through shifting industries, the expenditure of production can be decreased. Other costs like transportation cost, the maintenance cost will also be low. The amount of salary for the employees will also be less. New technologies can also be introduced with skilled laborers in those industries that shifted their manufacturing abroad.
The shift of manufacturing affected the economic well-being of locals; it increased employment opportunities in countries, especially in local areas (How does manufacturing support the local and global economy, n.d). Through the shift of manufacturing, it resulted in the development and growth of the economy. It helped to increase infrastructure facilities like transportation and communication. It will increase the standard of living of the people. Both men and women will get a chance to earn income.
Like that other facilities like quality education and health care facilities will also increase in the country. The rate of profit of the industries increased due to the lower cost of production. The revenue of the company also increased because management wants to pay less salary in other countries than their home country. The demand and supply of the commodities also increased. Due to the increased employment opportunities, people have enough money in their hands, and they will buy more products. The introduction of modern technologies also helped to increase production. As a result of manufacturing, the industries began to earn a profit (How does manufacturing support the local and global economy, n.d).
Globalization changes the face of textile, clothing and footwear industries (1996, October 28). International Labour Organization.
How does manufacturing support the local and global economy? (n.d) Air Boss of American Corp.