Answer the questions- around 175 words

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Reference is needed.

Do you think companies are and should be concerned when domestic jobs are reduced due to ‘contract production’ outside the home country as part of a FDI decision on supply chain? (Is it a big deal? Is there any strategic play in these decisions?)

[Firms undertake investments abroad for many reasons. They routinely initiate manufacturing contracts/partnerships with overseas suppliers in exchange for access to markets. China and India would be routine examples. Now, we see this in all developed countries as well. Labor at home always argue these deals cost jobs at home even as they possibly lower cost for the companies. This is also accompanied by saying that these companies are breeding future competitors. Another view is that, supply chains can get disrupted suddenly by going overseas and cost is not everything. Some say, it helps release resources for innovation through more sales and market access abroad!]

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