Costing and Economics of Textile Production Essay

Costing and Economics of Textile performance - Essay ExampleA company will invest in country in which back off infrastructure is available a company will invest in a country with honorable delight network, exhaustively energy and electricity services and good communication network, a country with unfortunate infrastructure will non be appropriate to invest in as it will not enable smooth running of the company. Poor infrastructure will not enable the company to transport its goods on time and this may also cause an increase in the cost of production of its goods and thereof it will be less likely for the multinational company to invest. Some countries have grand resources and factors of production, theoretical account raw materials used for production or even abundant skilled and cheap labour, when much(prenominal) advantages cost then there is a high likelihood for a multinational company to invest, a good example of this is why many multinational companies invest in thi rd world countries, because there is abundant and cheap factors of production. However multinational companies will be less likely to invest in countries where such advantages do not exist.