5.4 Location (Factors (Costs (Labour, Transport, Land), Government (Laws,…
Type of land
Familiarity with the area
National, regional or international
The impact of globalization
best analyzed based on the 4 business function
dismantling of trade barriers
deregulation of the worlds nancial markets
increasing size of multinational companies.
increase market share
use extension strategies
use deensive strategies.
Outsourcing (sucontracting) and offshoring
the practice of using another business (as a third party) to complete the part of the work
Outsourcing can help a business cut costs in order to earn a competitive advantage
Offshoring is an extension of outsourcing in the case of offshoring, a business outsources outside the home country
in-housing and reshoring
reverse outsourcing, to stop this approach and
to start performing peripheral activities internally again.
the business decision to stop outsourcing may be motivated by the desire to regain full control or to reduce the costs of taxes, labour and transportation
reshoring refers to the practice of taking back jobs lost to subcontracting overseas, in order to refocus on the quality end of the market