Delocalization: Advantages, inconveniences and consequences
Summary :
Table of Contents
- Main definition and introduction
- Advantages
- For home country
- For host country
- Inconveniences: Delocalization can have harmful effects on economy
- For home country
- For host country
- A delocalization example: European delocalization of services
- Recent trend
- Conclusion
- Glossary
- References
Abstract
Economic delocalization is a transfer of activities, of capital and of employment in areas of a country or of the world which have competitive advantages. delocalization consists of separating fabrication areas and transformation products areas of consummation country. The production is delocalized in other countries and thus the phenomenon of delocalization offers employment to foreign people. That is why increase of unemployment in developed countries is explained by delocalization. Entrepreneurs produce where it is cheaper and sell where there is purchasing power. If the delocalization phenomenon is very old - companies began this movement in the 60s- it developed in the 90s thanks to the decrease of transport costs, the improvement of communication techniques and market globalization.
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