Assignment task:
Industries are important for the economy; industries such as textiles and clothing have shifted manufacturing abroad. This could be due to many reasons. Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another (Fernando, 2023). A reason that textile and clothing industries may have shifted abroad could be due to reaching new customers, if the industry moves to a different country their products would reach a different area of customers than they would in the U.S.. Citizens in different countries may like the product even if U.S. citizens did not. The industries may have shifted manufacturing abroad could also be due to production costs. Manufacturing costs in a developing company would be much lower than in a country such as the United States. Industries may decide to move manufacturing to a developing country to cut costs of production but the opportunity cost would be the resources an already developed country has.
The shift has affected economic well-being, to the areas they are shifting too has been very beneficial to the development and growth of the economy. To the places they are leaving it could cause some hardships. To the areas the industries are moving to it can lead to more employment opportunities for both men and women. This in return can lead to more healthcare opportunities as well as education (Huber, 2022). To the area that the industries are shifting from, it can cause unemployment which can cause more citizens to fall into poverty. The gains outweigh the losses. The rate of profit is increased due to production costs decreasing. The companies are also gaining more profit by not having to pay employees as much. With modern technology they are still reaching more buyers by having online shopping opportunities. The good the industry is providing in the new country is also very beneficial.
References:
Fernando, J. (2023, March 20). Opportunity cost formula, calculation, and what it can tell you. Investopedia.
Huber, B. R. (2022, March 28). Manufacturing Isn't the Only Way Poor Countries Can Develop. Princeton University.