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Supply chain logistics Week 2 Discussion 1

Supply chain logistics Week 2 Discussion 1

Q Discuss the advantages and disadvantages of locating manufacturing, assembly, or distribution facilities in countries with relatively low wages.

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Rates of wages of labor seem to be a chief locational factor with chains of supply turning out to be more global in terms of nature. Relative comparisons may be intuitive even though comparisons of absolute wage are vital. For instance, a firm may have similar costs of compensation in an approximate manner by recruiting one worker of the United States or nine workers who are Mexican at the rates of wages prevailing. The total output might be generated in more number by nine workers in comparison to one worker. Thus, the advantages of productivity could also be there (Murphy & Knemeyer, 2018). One probable drawback is that limits are there sometimes on the number of personnel in supervisory which can be received from outer to the nation