Reasons for Multinational Companies to Move Production Facilities out of China by the Example of Apple Company

Student: Borodin Vladislav

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2017

In the last decade one of the most widespreaded western economic trends was so called “offshoring”- the process of production facilities’ relocation from the home ground to a foreign soil. Global value chains and pursuit for a rapid growth appeared to replace the development of a local manufacturing industry. At the initial step assemblies was transferred to countries with low labor costs, high population growth level, and favorable investment environment. The main beneficiaries of this process appeared to be the states of East Asia and, in particular, China. However the process of a progressive deindustrialization and the prospect of losing industrial competitiveness began to cause growing discontent and anxiety in Western societies. The topic of moving production facilities from China became the main agenda.

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