There are many reasons why a British based business today may want to transfer production overseas. One of the main reasons is because of the resources that are needed to produce the products. Resources can often be cheaper abroad and obviously reduce costs for the business. Also if the business moves closer to where the resources are then they will reduce the costs for shipping the resources over to Britain. Britain also has very busy roads that can cause transport to take much longer and therefore cost more. These reduced costs are clearly advantages to the business therefore giving a good reason to move abroad.

Another good reason for a British based businesses to move abroad is if there is a higher demand for a product (that the business sells or may sell abroad in the future) than there is in Britain. The demand could be higher because of the current fashions and hypes' that there are in the country. This would mean the business can be closer to it's customers and again reduce costs for moving the products around.

Labour availability, costs and training can also be influencing factors for a business to move production overseas. There may be more available staff abroad than in the area of Britain the business is in. Potential staff for business abroad may be able to work for cheaper, reducing the businesses wages and salary costs. There could also be better or cheaper training of staff where the business may move its production.

There are different Laws in different countries that could prove beneficial to a British business if it was to move its production. For example, a law that could benefit a business in the food industry is health and safety regulations, if the rules were more relaxed than in Britain a business can cut back on it's regulations and therefore reducing costs. Also in some countries trade unions may be less powerful and in control than they are in Britain so the people running the business can have more control of decisions and actions taken.

Another influencing factor is that now days with the Internet, any business can become global and sell products/services to anywhere in the world. Because the geographical position of an Internet business does not matter so much, the business could move abroad to where premises are cheaper than in Britain. Premises in Britain are well known to be highly priced.

Although there are so many factors that may influence a British based business to move abroad, there are however also disadvantages.

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