The document discusses the advantages and disadvantages of offshoring production to developing countries with cheap labor. The advantages include lower costs from cheap labor, access to new national markets, and the availability of a large low-educated workforce. However, there are also cultural, administrative, political, and economic distances to overcome that make coordination and understanding market needs more challenging when operating in foreign countries with different cultures and approaches.
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2. advanteges
cheap labor and
production national market
developing low educated
country work force
disadvantages
know market
culture differentiation
3. Administrative
Cultural Geographical Economic
and political
distance distance distance
distance
huge distance
different
in culture,
approach to Communism
lagunage, jetlag
hierarchy in vs capitalism
social norms
company
and etc.
5. High Complex
Global
export
Coordination
of activities
lenovo
Simple
Multidomestic
Low export
Configuration
Dispersed of activities Concetrated