Searching for the Best Location Subcontracting can be organized in several different ways. Now we will try to take a closer look at several of these. In general, companies attempt to shift risks to other sectors. But at the same time, they try to maintain as much control over production as possible and do this all as cheaply as possible. Because of increasingly rapid communications systems and improved transportation, the moves can be made relatively easily to and from anywhere in the world.
Companies are always on the lookout for newer locations that better suit their needs.
Low wages are always an attractive perk, as well as a good infrastructure, tax breaks, favorable import-export conditions, the absence of unions and a government that doesn't concern itself with labour and environmental legislation. Europe experienced its first factory closings and saw the companies move to such popular new destinations as South Korea, Taiwan, Tunisia and Hong Kong. Actually, after a few years the wages started to rise in these new locations as well, because, among other reasons, stronger trade unions emerged, and the next generation of moves followed. Thailand, the Philippines, Bangladesh, India, Sri Lanka are the nations which became popular in the '80s and which are, for the most part, still where much of the clothing manufacturing takes place. Newer destinations include Cambodia, Laos, Burma, Vietnam, and especially China.