The metaphorical expression extended work bench used for industrielle of production plants (or whole national economies), which do not operate own research and development, but only wage manufacturing of products to originally offer, which were developed by other enterprises (or in other national economies).

This trend begins in the seventies, when the ASEAN states opened toward the west began to attract foreign investors. Also in South America there were these tendencies. With the using globalization, the opening of Eastern Europe towards the west and the end of the guided economy in India end of the 1980er and at the beginning of the 1990er years continued to spread this trend.

The extended work bench offers several advantages to the investing enterprises:

• Proximity to sources of raw material
• Low wage level and (in many countries) weak trade unions, missing employee rights (partly even the utilization of Kinderarbeit)
• Direct support by (often) a corrupt political class
• Entrance to the domestic sales markets

Disadvantages and risks for the economy are against it

• Unstable political systems
• Rate of exchange risks (see Asia crisis)
• unprofessionelle banks

For the individual countries are the advantages

• Structure of the infrastructure
• Training of skilled workers
• Tax and customs returns

The disadvantages:

• increasing dependence on the world economy and international financial stream
• increasing environmental problems

Initially above all ranges of the light industry paged out, which few technical personnel and small investments presuppose, it followed the heavy industry, which needs more capitals. With the increasing education level in the appropriate countries the outsourcing covers however also White Collar jobs and even research and development departments.

The effect "work bench" lose themselves slowly and in the former "work bench countries" arise adequate suppliers and even competitor extended. In the meantime the term extended work bench is also generally used for Sublieferanten, which furnish standard activities or a pre-working for the actual supplier, who can adapt thereby more flexibly to varying capacity need.

see also

• Rolling camp
• Outsourcing
• Globalization

Articles in category "Extended work bench"

We found here 4 articles.