Costing and Economics of Textile Production Essay

Costing and Economics of Textile Production - Essay Example A company will invest in country in which support infrastructure is available; a company will invest in a country with good transport network, good energy and electricity services and good communication network, a country with poor infrastructure will not be appropriate to invest in as it will not enable smooth running of the company. Poor infrastructure will not enable the company to transport its goods on time and this may also cause an increase in the cost of production of its goods and therefore it will be less likely for the multinational company to invest. Some countries have abundant resources and factors of production, example raw materials used for production or even abundant skilled and cheap labour, when such advantages exist then there is a high likelihood for a multinational company to invest, a good example of this is why many multinational companies invest in third world countries, because there is abundant and cheap factors of production. However multinational companies will be less likely to invest in countries where such advantages do not exist.