Change in Manufacturing Location

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  • Created by: Al
  • Created on: 11-06-13 17:00
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  • Reasons why TNCs build factories in NICs
    • Cheap Labour
      • Minimum wage in NICs  is often less than in richer countries such as the USA
    • Prohibition of Strikes
      • Money isn't lost waiting for employees to work
    • Laxer Health and Safety Regulations
      • Health and safety is often not enforced
      • Less money has to be spent on it -it's cheaper
    • Tax Incentives/Tax Free Zones
      • Companies don't have to pay tax for a certain period of time
      • Countries offer areas where companies don't have to pay tax
    • Long Working Hours
      • Rules aren't as strict - more work gets done


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