JCB plant opens in Brazil

JCB have just opened a new assembly plant in Brazil.  This BBC report explains why – but basically Brazil is in the midst of a construction boom and have a great need for the type of machinary manufactured by JCB.  The boom is fueled by their economic growth, and the fact that Brazil is hosting the Football World Cup in 2014 and the Olympics in 2016.  The basis for overseas assembly in this instance is that it is cheaper to transport components and parts, than it is to ship finished goods.   It is also probably the case that labour cost in Brazil is lower than in the UK.

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