Question

a. When would it be a good idea to outsource your manufacturing to a foreign Country?

b. When would it be an absolutely bad time to outsource your manufacturing to a foreign Country.

What I am looking for here is what situations at a company might cause you to consider going offshore?

Provide some concrete examples to strengthen the questions

Answer 1

A)

The outsourcing is done to reduce the cost of production. When the production cost is relatively high in domestic manufacturing unit, it would be right decision to outsource the work to such area where the production cost is low.

The production cost is high in USA, thus here it would be prudent to outsource such work to low cost countries such as India and china.  

B)

The outsourcing is not right decision when the low cost countries do not provide the stable environment. The political instability might cause the larger loss to the to such firm .

the most of the firms do not outsource their activities to the Pakistan because Pakistan economy and Afghanistan economy are relatively unstable and the political environment is not favourable.