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More Companies Produce Goods in The Factories Located in Different Countries - Task 2 Band 9 Essay

You should spend about 40 minutes on this task.

Write about the following topic:

More companies produce goods in the factories located in different countries other than the location of the head office. Advantages and disadvantages?

Give reasons for your answer and include any relevant examples from your own knowledge and experiences.

You should write at least 250 words.

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Task 2 Band 9 Essay Sample Answer

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IELTS Task 2 Band 9 Sample Essay

It is an increasing trend that companies manufacture the products in other countries instead of the head office. While this phenomenon will bring in the international specialization, it causes pollution for the relocated nations and harm the industries inside the home countries.

On the one side, the outsourcing of production in other countries could be beneficial to the multinational companies which could reduce the product cost. To be specific, some countries have a comparative advantage over others in producing a particular good or providing cloud-based services at lower opportunity costs. Taiyen Biotech Corp., for example, leverages the ample workers in labour intensive markets for mass production for the consumer commodity and stewards the whole operation in the head office. Therefore, the outsourcing manufacturing could effectively take advantages of the strengths of other nations.

On the other side, the outsourcing across the world allows the multinational conglomerates to seek the places where has the limited environmental protocols and policies. In other words, the developing countries without heighted scrutiny of environmental requirements are facing assorted pollution challenges due to the presence of factories from other nations. In addition, a plethora of enterprises flock to build up the third-country factories to cost down and in turn shut down the manufacture divisions. As a result, these actions lead to hollow out the local economy and worsen the high unemployment rates inside the developed countries. Thus, the pollution and competition are unavoidable threats during the process of outsourcing manufacturing.

To sum up, the firms can gain profits from manufacturing commodities internationally, however, there are potential risks related environment problems and hollowing-out industry.

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