Published On: Wed, Apr 15th, 2015

Why Are So Many Businesses Moving Overseas?

Most people will have noticed that hundreds of business owners have taken their operations overseas in the last few years. The situation as got so bad that people in the UK and US are wondering what is happening. Today, we’re going to set the record straight on the whole fiasco in the hope of highlighting the benefits of basing your firm in a different country. Of course, some areas offer more advantages than others, and that is why so many top firms have relocated to them. Experts agree that moving large operations overseas only serves to prolong the recovery of our economy. However, it seems to make good financial sense to them, and here is why…


Better tax arrangements

Nations like Singapore focus their efforts on improving imports and exports for country growth. So, you would think it is in their interests to stop business owners from moving to their domain. However, they currently offer amazing tax arrangements that mean companies hardly pay a penny to the state. That means they have more cash for growth, and more funding for marketing ventures. At the end of the day, successful firms can pay millions each year to operate in the US and UK. That is not the case in most Asian countries.

Cheaper workers

There is no getting away from the fact that people who earn a couple of dollars each week are considered rich in some Asian countries. That means business owners can get away with reducing their staffing costs considerably if they decide to move. Again, those savings can be used for advertising, product research, and development. On top of everything else, workers have fewer rights in some locations too, and that means it is easier for an employer to get the best team. If anyone doesn’t perform as expected, their boss can fire them without fear of reprisal.

More advanced technology

Technology is a big part of the business world at the current time. We all know that the best products are released in Asian countries before they reach the west. As automation is key in the modern company, some companies have relocated in order to take advantage of the latest tools and gadgets. Some items are on the shelves in Japan and China more than a year before they reach the UK or US.

Lower property costs

Buying a property suitable for housing a large business in the west can cost millions of dollars. The same size property in poorer countries could be obtained for considerably less. As most companies rent their premises, it makes financial sense to opt for the cheapest solution possible. That is another main reason so many firms have been on the move of late.

As you can clearly see from the information on this page, there are many advantages to moving a company abroad. However, doing so means the UK and US no longer make tax money from the operation, and so it doesn’t help our economy one bit. Will more businesses follow suit as we move towards 2016? Almost certainly.