Answer :
When a company outsources or moves jobs overseas to take advantage of lower labor costs, it can help the company achieve production efficiency. Here's why:
1. Lower Labor Costs: By moving jobs to countries where labor costs are lower, a company can reduce its production expenses, making its operations more cost-effective.
2. Increased Output: With lower production costs, the company can potentially increase its output without significantly raising its overall expenses, leading to higher efficiency in producing goods or services.
3. Competitive Advantage: Achieving production efficiency through outsourcing can give the company a competitive edge by offering products at lower prices or improving profit margins.
4. Focus on Core Activities: Outsourcing certain tasks can allow the company to focus on its core activities, leading to a streamlined and more efficient production process.
In summary, sourcing jobs overseas to benefit from lower labor costs can enhance a company's production efficiency by reducing costs, increasing output, gaining a competitive advantage, and enabling a focus on core activities.
1. Lower Labor Costs: By moving jobs to countries where labor costs are lower, a company can reduce its production expenses, making its operations more cost-effective.
2. Increased Output: With lower production costs, the company can potentially increase its output without significantly raising its overall expenses, leading to higher efficiency in producing goods or services.
3. Competitive Advantage: Achieving production efficiency through outsourcing can give the company a competitive edge by offering products at lower prices or improving profit margins.
4. Focus on Core Activities: Outsourcing certain tasks can allow the company to focus on its core activities, leading to a streamlined and more efficient production process.
In summary, sourcing jobs overseas to benefit from lower labor costs can enhance a company's production efficiency by reducing costs, increasing output, gaining a competitive advantage, and enabling a focus on core activities.
