Moving production overseas. Is it better for your economy to produce goods at home?

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Moving Production Overseas
Question 1
Cost of labor is an important factor in the production of goods. In many production facilities, goods and services produced by the firms are financed partly by some foreign investments and tend to be exported rather than used locally. Henceforth, foreign investment is portrayed as a substitute for trade in terms of offering financing. Economic growth occurs when cheaper goods are created and made accessible for the local’s consumption. Therefore, production can be moved overseas, since the organization manufacturing goods has its goals best achieved in the foreign market due to the financial help and bigger market in the new locality. As a result, this can be done by combating trade barriers in relation to the investment environment.
Question 2
Such a shift in production a developing country is likely to lead to less market for the products (Lovering). Additionally, the shift will come with additional costs in terms of taxes in the new country of production. Also, competition is heightened. Hence, the company has to work an extra mile to compete effectively with the companies lo...