Global cost forces Often dictate global location decisions e Costs of cheaper unskilled labor more than offset by the increase in other costs associated with operating facilities in remote locations o In some cases cheaper labor is sufficient justification for overseas manufacturing Other global cost forces have become more significant Cheaper skilled labor is drawing an increasing number of companies overseas9-9 Global Cost Forces ⚫ Often dictate global location decisions ⚫ Costs of cheaper unskilled labor more than offset by the increase in other costs associated with operating facilities in remote locations. ⚫ In some cases cheaper labor is sufficient justification for overseas manufacturing. ⚫ Other global cost forces have become more significant ⚫ Cheaper skilled labor is drawing an increasing number of companies overseas