Most of the business organizations usually open production plants in foreign countries for reducing the cost of products. The following are the major advantages of opening manufacturing units in foreign countries.

Lower Labor Cost
The operating cost for manufacturing units in many countries is cheaper than developed countries. If production is done in these countries the amount spent as salaries can be saved to a great extent. This can reduce the increasing salary patterns as well as non-availability of technical staff. Any fluctuations in the economy also can be balanced by overseas production units.

Reaching Underutilized Markets
For companies investing in foreign locations, the possibility of marketing products to the underutilized market without much competition is an advantage. Spreading about the company as a brand also can be achieved through production in the foreign country. If the country in which products are being marketed is going into a saturated economy then marketing overseas is the best way which can be started by the opening of manufacturing units.