Overseas Manufacture

Overseas manufacture refers to the production of a good in a country that is different to the location of the business’s headquarters. Reduces cost long-term – as labour, raw materials and taxes are potentially cheaper in another country If the manufacturing can be completed cheaper overseas then the selling price in Australia can be kept low – allows them to remain competitive and increase profits. Initial cost can be high, need to conform to countries laws/regulations. Harder to control quality, production process, wages and conditions of the workers overseas.