... compared to the pound, so exchanging Sterling for a currency of a an LEDC will usually be very profitable in terms that the company would be able to buy land and a factory for a lot less than they would in Britain. Therefore, if the company sell their manufacturing facilities in Britain and buy overseas they will undoubtedly have money left over, which can be invested in other areas of the business. Government policies can also be different in foreign countries, which enable cuts in costs. For example, in India, the restrictions on pollution levels and safety procedures is a lot more slack, so companies don't have to invest in as much safety equipment, which again will save money. However, there are disadvantages to moving production overseas. For instance, there can be lack of control in many cases where HQ is situated in a different country, which can lead to ...

See this essay or coursework document in full right now