Why does Rip Curl choose to own overseas factories? And why does Rip Curl maintain a factory in Australia when labour costs are much higher? Both of these questions are answered in detail in a certain video about Rip Curl, but I can't find the transcript. Any help in this area will be greatly appreciated. I think the video was called "Globalisation and Australian Businesses".
2007-02-08 18:41:33 · 2 answers · asked by Anonymous in Business & Finance ➔ Corporations
Maybe because rip curl is an australian business and by keeping some of its operations in australia they might have some sort of tax breaks, government incentive or maybe because its good PR to stay in Australia, but operations are cheaper offshore so that is why they have a factory elsewhere.
I did search around for that video, this is what i found
http://www.clickview.com.au/videolibrary/video_content.php?category_type=tafe&parent_category_id=63
2007-02-08 19:01:06 · answer #1 · answered by f_jayce 5 · 0⤊ 0⤋
Maybe the labor costs are more, but possibly other costs are less.
Maybe utilities, land, building costs are all cheaper. Maybe he gets tax breaks or the income tax is less. Any of these things might offset a higher labor cost. There may even be some environmental concerns that he can avoid by not having his factory in the U.S. Some other countries like Mexico have very relaxed environmental standards.
As for other places overseas, you can bet there is money to be made or companys wouldnt have their factories there.
2007-02-09 03:01:15 · answer #2 · answered by mslider2 6 · 0⤊ 0⤋