Will strictly follow offshore employment laws. This is why Andrews decided to sever ties with the previous supplier. The risk of being associated with a supplier that violated labor laws would expose Andrews to the constant threat of legal problems and negative press. This condition would largely eliminate this risk. 2. It will help Andrews reduce production costs and overall labor costs in the long run. Since acquiring a new supplier will take time and hinder production processes for a while, it will ultimately, however, help Andrews reduce costs once everything settles down. The advantage of this offshore location is the lower labor and production costs. 3. Overall, it will help reduce the risk of running into legal problems. As mentioned above, Andrews will face a profitability problem in the market. Competition is increasing and the only way Andrews can compete in the market, other than developing a competitive advantage in terms of business ethics, would be to reduce costs. However, if Andrews continued its business operations with the previous supplier, there would definitely be more risk of legal problems as that supplier has a bad track record
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