08-08-2007
UK businesses could benefit from overseas operations
UK-based firms may discover advantages in developing overseas operations, it has been claimed.
According to Matt Hardman of the Forum of Private Business (FPB), maintaining an overseas presence can reduce overall operating costs.
Indeed, for manufacturing, countries such as China are able to offer British firms lower labour costs, it has been claimed.
"Just look at the number of British companies that have got firms or sections or departments operating from the likes of China where it's extremely cheap labour," said Mr Hardman.
"It's extremely difficult to compete with that in the UK,"he added.
Indeed, according to Mr Hardman, the importing of products into the UK can enable businesses to take advantage of a number of loopholes in relation to taxation, including those relating to VAT.
The FPB is a UK-based organisation established in 1977.
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