Cost Of The Product Life Cycle Essay

767 Words Dec 1st, 2014 4 Pages
According to the Product Life Cycle, it is suggested that before a product has the opportunity to decline in popularity, that it is moved to another country. However, there are products that are better off being sold and manufactured domestically than elsewhere. Products that are most likely to be better sold and manufactured domestically are automobiles. Products that are most likely to be sold overseas are technological like televisions and computers. Reasons why a company may find it best to manufacture and sell domestic items or products to be feasible, vary in many ways. One justification is due to costs being cheaper. For instance, manufacturing a car in ones home market may be a very expensive process. Turkey is a market that has been increasingly growing in the sales of automobiles. It is “less expensive to produce the vehicles in Turkey than to export them there because the country’s skilled laborers and sophisticated engineers cost less and are willing to work more days per year and longer hours per day than workers in the home countries.” (IB, 577) Basically, it would still be a domesticated process if they’re made and sold in Turkey. Some examples of auto companies that produce in other countries are Volkswagens, Mercedes Benz, BMW, and Fiats. The decided to manufacture in India since it “charged over 100 precent duty on fully built imported cars.” (IB, 578) This change in manufacturing location is the result of the governments restrictions upon many imports.…

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