Industrial relocation

Offshoring is the movement carried out by some companies moving their workplaces in developed countries to countries with lower costs for the company, generally developing countries. Recently, the production of companies acquired by these multinationals has begun to be relocated to their countries of origin.^{[citation required]}.Relocation is one of the problems caused by globalization economic

The causes of this process are usually the search for:

• Lower cost of labor.
• Less stringent legislation with the protection of the environment and the fight against pollution, landlessness, etc.
• More flexible working conditions, allowing less safety at work, longer working hours, etc.

The consequences of relocation can be:

• Increased unemployment in the country of origin.
• Creation of low-quality employment in the country of destination.
• Pollution and destruction of the environment, in the absence of the country of destination of environmental controls or sensitivities to assess damage appropriately, which can cause drought, desertification, abuse of resource exploitation, increased waste production, etc.
• In order to compete with the offshore company, its competition must imitate its methods.
• Reducing the quality of the final product, being performed by less qualified staff or in worse working conditions.

But moving production to other countries can also have positive consequences. Among them would be the following:

• Decreasing unemployment in the country receiving investments. It should be borne in mind that in these countries (poco-developed) the unemployment situation is much more serious than in a developed country, due to the lack of social protection that ensures a minimum income to those who do not have work.
• Although salaries are much lower than in Europe or the United States, they tend to be higher than those of native companies and much more than in rural areas, where many workers come from (De la Dehesa. G, Understanding Globalization, Madrid, Editorial Alliance, 2004, pp. 260 and 261) On the other hand, foreign investment also creates qualified jobs (best paid), contributes with its taxes to state development and allows the emergence of native companies, which work for the foreign manufacturer.^{[chuckles]required]} All this facilitates the improvement of public services and the creation of a middle class and business in the host country, which can become an engine of economy and domestic consumption. A proof that the host nation improves its standard of living we have it in that states that the most foreign investments receive are those that have grown economically most in recent years. In Asia we could compare China, South Korea and Malaysia (with many foreign investments and a great improvement in living standards in recent decades (El País, 24 October 2010), with Nepal, Laos and Mongolia (without just foreign investment and a much lower level of living and economic growth).