商务英语uni 5a.docVIP

Why do companies relocate? 1) To lower operating costs. ??? High operating costs are mainly caused by high taxes, high cost of labor ?? (average salaries, benefits, workers compensation, unemployment insurance costs, etc. or environmental regulations.) 2) To be closer to a large segment of their market.??? Long distance to market means time and money. transportation costs;??? product delivery times.3) To be closer to certain suppliers or natural resources. 4) To be closer to similar companies.?? Many companies like to cluster around other companies within the same industry, e.g. Silico