 The strongest incentive for enter a foreign operations. Lower   cost labor Less     stringent policies in other countr...
Cheaper shipping costs forunassembled products.Produce  in the market to improveits competitiveness and profitmargin.
 Look  for another market to improve  their sales volume and cash flow to invest on research and development.
   Incentives of    the host    government   Reduced taxes   Low interest    loans
 The companies have to move their harmful operations to another countries (Africa, Asia and Latin America), because there...
Cost-reduction motives
Cost-reduction motives
Cost-reduction motives
Cost-reduction motives
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Cost-reduction motives

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Cost-reduction motives

  1. 1.  The strongest incentive for enter a foreign operations. Lower cost labor Less stringent policies in other countries. China and Vietnam.
  2. 2. Cheaper shipping costs forunassembled products.Produce in the market to improveits competitiveness and profitmargin.
  3. 3.  Look for another market to improve their sales volume and cash flow to invest on research and development.
  4. 4.  Incentives of the host government Reduced taxes Low interest loans
  5. 5.  The companies have to move their harmful operations to another countries (Africa, Asia and Latin America), because there the environmental protection are less strict.

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