Convincing Features
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Due to rising labor costs in Malaysia, you consider relocating some of your production facilities from Malaysia to an emerging market, such as Vietnam, to better integrate its supply chain in the South east Asia region.
As the Senior Finance manager of the company, you are required list all the estimated expenses, such as cost of factory acquisition, renovation and installation cost for new machines, cost of training of new workers and etc. However, you are confidence that such relocation of factory may be a cost saving exercise in terms of labour cost and logistic expenses and etc. Apart from these financial consideration, you are advised by the CFO to further look into the non-financial consideration of such move.
Use cost-benefit analysis to recommend whether you should shift parts of its production facilities from Malaysia to other emerging markets or not Justify your answer with supporting evidence extracted from reliable source of information.
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