BENEFICIAL ESTABLISHMENT

In a developing century, countries have started to co-operate with the other countries to blend the ideas to develop their prosperity by discovering and building new kinds of things. If we have a look around the world, we may see dozens of companies working in other foreign countries in fields of construction, technology, vice versa.

For instance, the presence of Mercedes-Benz Manufacturing in Hungary. From a larger perspective, that is a huge pro for both countries. Because the presence of Mercedes-Benz in Hungary refers to an investment in terms of Hungary and also Germany as well. From the national perspective, the reason why Mercedes-Benz built the factory in Hungary is because of the labour force. In conclusion of the establishment, Germany had enlarged their market location; Hungary improved the economy, employment(in terms of the workers in the settled country), and also the income of tax. So, like I mentioned initially, this kind of investment by a foreign country that settled in a foreign country.

The Labour force is the numerical data of the people who can work. There are also some factors that have a huge impact on the labour force such as; the population of a country, employment rate, economical factors and more. It also can be considered as the main factor for a company to establish a factory in another country with a cheaper labour force.

Furthermore, China is likely to be a helpful example. Most of the foreign companies, even some of the well-known companies are establishing their manufacturing factories in China in order to gain benefit from the labour force caused of China caused by the rate of population, employment rate that is referring to the high labour force which is also making them the first in ranking all around the globe.

In conclusion, the establishment of a manufacturing factory by a manufacturing company that is located abroad depends on the economy, employment, basically the labour force which is directly proportional to the population of a country. Furthermore, both countries are affected beneficially because of the investment taken.

In Turkey, a manufacturing factory was located in Gebze for 24 years which is sadly closed recently. This decision has affected Turkey in terms of investment, import and employment. In case we check everything from detail to detail, we are going to realize the significance of this topic. So, I completely defend the idea of establishment foreign companies in other countries.

 

 

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