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Costs are rising for U.S. companies as federal and state governments increase
direct or indirect taxes and as public agencies issue a never-ending stream of new
regulations. In many cases company leaders feel that they are forced to look for alternative
non-U.S. sites if they are to remain competitive.
The "hotspots" for business expansion continue to include Mexico (many areas are free of the drug-related crimes we see on the news) and India. Emerging in the offshore market are Central America, Vietnam and Malaysia.
There are several ways to locate a facility in another country:
- Creating a wholly-owned subsidiary oriented to doing business in that particular location, or going the joint-venture route.
- Outsourcing to a foreign manufacturer experienced in your field who maintains the proper certifications and guarantees quality work.
- Contracting with a company that specializes in "turnkey" or "shelter" operations that provide buildings and all support services in a seamless fashion. The operations could be an assembly plant, call center or administrative support/back office.
Foreign Companies also 'Go Foreign'
It isn't just U.S. companies that locate facilities overseas, so do companies based in Canada, Sweden, Norway, Germany, the U.K. and others.
Despite nationalistic tendencies felt by citizens of many nations, companies around the world boost their competitiveness by locating facilities to lower costs and reduce risks. While doing so they strive to maintain quality and improve productivity.
Experts who understand the global picture will help you sort through the cultural, workforce, financial, logistical and political thicket in order to decide on the course of action that will be most beneficial to your company.
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