Support from international companies

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Description

Since the price of labor force in developed countries would be relatively high, more and more international companies would like to move their manufacture modules to developing countries, where the labor price is relatively low. However, there would be another problem, which is the cultivation of supply chain. Generally, the supply chain is not as matured as they are in developed countries. And no matter in supply chain companies or in manufacturing departments themselves, skilled professionals are highly needed. So, in the long run, and even for the sake of the international companies themselves, to invest on the local education could be able to get support of multinational companies.


Enabler

  • Globalization
  • Cheaper labor force
  • WTO and lower tariff
  • Sophisticated logistics systems
  • Supports of local governments
  • Awareness of charity
  • High tech industry or high tech related industry


Inhibitor

  • International companies’ profits and shareholder equalities
  • Low investment-return rate
  • Time value of investment
  • High opportunity cost



Paradigm

Expert


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