Simple business question? PLEASE help?

Question

why do so many companies choose to put their factories in places like china or Japan?

can you please give me some reasons for companies to manufacture their goods in places in Asis, because ive noticed a lot of cars and almost everything has been made there.

Answer 1

the short answer would be economics.  companies can hire cheaper labor overseas then they can in the US.

Answer 2

Everything already answered is right, they make it for so much less that even with the cost of shipping it back its still cheaper. Another reason is that the laws in Asia make it much easier for manufacturers to do pretty much whatever they want, including lower worker benefits, less safety, pollution without consequences, lower taxes and less legal enforcement where laws are on the books. Plus its easier to use bribery to get past legal rules without negative consequences, not to say that bribes (or as they call them, campaign contributions) don't exist in the West, too.

Answer 3

Cheaper operating costs - labor, materials, sourcing, insurance (in any), tax breaks/incentives, lax environmental standards,  etc.