Published at Friday, November 09th, 2018 - 11:55:52 AM. Manufacturing Robot. By Mavise Douffet.
In most countries, especially in the developing nations, there are some hidden costs that a foreign investor comes to find about once he has already established his company. For instance, in Asia and Africa it is commonplace for investors to bribe, give kickbacks or even pay protection fee to facilitate services and shield their investments. This normally pushes operating costs up thus making offshore manufacturing unviable.
Similarly, offshore manufacturers incur expenses like shipping, inventory, communication, travel, training, permits, duties, tariffs, compliance with import/export restrictions and others which they may not incur in their country. This in the long run pushes the production cost.
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