Reply with at least 150 words in text citation and reference We know that industries play an important role in the development and growth of the economy. Through the success of industries, it can shif

Reply with at least 150 words in text citation and reference

We know that industries play an important role in the development and growth of the economy. Through the success of industries, it can shift manufacturing to other countries also. In U.S, industries like textile and clothing shifted its manufacturing abroad. There are many reasons for this shift. One reason is that in the modern world there are many companies were established which is producing same type of products. This will affect the profit of the companies. So, companies will find other ways to increase their profit. People have so many choices in front of them. There is a cost for consuming a good, that is opportunity cost. Opportunity cost is the cost of the next best alternative for a product or a service. “To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others. Considering the value of opportunity costs can guide individuals and organizations to more profitable decision-making” (Fernando, 2020). If a product is not liked by a consumer he can try other product with same characters. Like that industries try to enlarge their production to other countries. It will help them to gain profit. The interest and taste of the consumer will also change always. So, it is necessary for the industries to change their location. They will try their product to new customers. If the demand for the product is high, the industry will shift the manufacturing to other countries. The cost of production will be low in developing countries than the developed countries. So, through shifting industries the expenditure of the production can be decrease. Other costs like transportation cost, maintenance cost will also be low. The amount of salary to the employees will also less. New technologies can also be introduced with skilled labors in those industries who shifted their manufacturing in abroad.

Fernando, Jason. (2020 December 27). Opportunity Cost. https://www.investopedia.com/terms/o/opportunitycost.asp