Why is the development of technology (from cars to gadgets), the production of parts for it and their direct assembly taking place in different countries?

Why is the development of technology (from cars to gadgets), the production of parts for it and their direct assembly taking place in different countries?

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answers (2)

Answer 1
July, 2021

I'll tell you about the ZazDaewoo car ...

The government of each country protects the domestic market and stimulates production within the country. Therefore, the South Korean government stimulates the export of finished products and imposes heavy taxes on the export of semi-finished products. The Ukrainian government wants to develop domestic production in the same way. Therefore, they impose preferential taxation on the import of spare parts and draconian taxes on the import of finished goods.

Now what do we have in the bottom line?

Daewoo Lanos are completely assembled in South Korea and exported to Ukraine by ships. In the port of Varna they are unloaded, in the port plant they are dismantled (!) For parts (large blocks). Then they are loaded back onto ships and taken to Ukraine under the guise of spare parts. These Lanos are reassembled at the Zaporozhye Automobile Plant. Everyone is happy ...

Answer 2
July, 2021

Obviously because it's cheaper. After all, it is more profitable to produce each of the parts where the resources and raw materials necessary for its creation are cheaper, and it is more profitable to assemble where the labor is cheaper (if it is used, of course). And let's not forget that such economic ties play an important role in international politics.

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