---Building a Factory in a Foreign Country

Companies can improve their profitability by increasing revenues or reducing costs. One way to contribute to a better bottom line is to locate some of their factories in foreign countries, but there may also be additional risks. What are the advantages and disadvantages of building a factory in a foreign country instead of keeping operations at home? Resources for this exercise: Global Business Access general information about conducting business throughout the world or connect to resources on specific countries. Stories about foreign sweatshops: Working conditions in Sport Shoe Factories in China by Sweatshop Watch, September, 1997. Summary of a report by two nongovernmental organizations in Hong Kong about labor conditions at Nike and Reebok factories in China. Behind Celebrity Labels, a Problem Retailers Say They Can't Control by Beth J. Harpaz, Associated Press.

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