subject: The Effect Of Companies Moving Abroad [print this page] The number of companies that have decided to move their companies across the globe have over the years increased. So much so that is has left a lot of empty plants and a number of workers being made redundant.
Despite some companies being arguably selfish, thinking from the companies point of view this is probably the best and only possible solution in order to continue running. With companies that work within the production and manufacturing industry, the best way to operate working with the lowest cost as possible. Unfortunately within the UK, the cost of labour and raw materials are far more expensive than those of some other countries. With the UK the costs of purchasing materials spiralling and the cost of labour being three or four times more, the companies within some manufacturing and production companies may not even survive long enough to make a single profit or even break-even.
Although companies moving abroad may be seen as bad to the economy and even worse for the employees of these companies, unless there are year on year free investment funds injected into these corporations, it can hardly cope with the ever rising costs within the UK. Unfortunately for the UK, raw materials can be hard to come by, therefore importing goods will be the only solution. By importing goods to the UK, costs again arises due to import tax, the cost of delivery etc, so eventually the company will still decide to move to the country where the raw materials originate to avoid those costs.
Unless something can be done with these spiralling costs of production, there will always be more and more companies deciding to operate in other countries which will in turn continue to leave a dent within our job market and industry. Government investment funds cannot always be the solution, the investment funds will mostly come from tax payers money, the ever increase in investment funds being injected to companies, the less monies there are to assist the rest of the country needs; such as health and social care, education etc.
This topic can go on forever; it is an open ended topic that there are no right and wrong answers. When companies move abroad, there isnt anything we can really do to stop it, so the best solution would be to concentrate on the ex-employees that have been left out of work because of it, at least helping the people that are within the country getting back to work would be a better option than wasting time on something which cannot in this current climate be stopped.
