Image taken from here
In recent years, outsourcing and exporting production away from the company’s home nation has been a trending strategy to reduce costs and maximize profits. Providing that outsourcing labor to a different country may reduce costs and maximize production, moving production away from the home country often raises issues of national pride. In the article found here, Pitas argues that government intervention and a unique case of globalization has resulted in British automakers overtaking French automakers. I must agree with Pitas in his position that it is government intervention and policy is a key determining factor as to where a company locates its production. In the article, the gravity of a company moving away from its host country is clearly expounded. Exporting production to a foreign country has a large impact on the local employment market. Meanwhile, from a positioning perspective, it makes sense from a managerial perspective for a company to minimize costs in order to maximize their profits. As Pitas mentioned, the dilemma of whether to outsource production efforts to a foreign country is not black or white. I would say that although this is pointing out the obvious, it is true that their are both benefits to outsourcing production such as minimizing production costs and taking advantage of government incentives. On the other hand, the argument that many losses such as employment and national pride also comes with the exporting of labor. In essence although exporting labor may not be black or white, it may be the current prettiest shade of gray.
Citation: Pitas, Costas, and Gilles Guillaume. “Special Report: In Foreign Hands, British Automakers Overtake France.” Reuters. Thomson Reuters, 1 Oct. 2014. Web. 1 Oct. 2014.