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Competitive Alternatives Highlights
KPMG's Guide to International Business Location
Costs by sector
International business cost relationships vary by industry sector.
For manufacturers, significant costs for globally sourced materials
and equipment do not vary by location, resulting in lower cost differentials
for most countries. In this sector, Australia
and Italy achieve their best rankings,
while the United Kingdom and Germany
also achieve their strongest results.
Labor costs are more significant in the software sector, and vary
considerably by country and by region. This results in generally
higher cost differentials in this sector, as seen most prominently
in the cost advantage that Mexico
holds over all other countries. Among other countries studied, Japan
achieves its best ranking in this sector.
Cost differentials are generally higher for R&D, due to differences
in labor costs for scientific and technical employees, as well as
differences in tax treatment of R&D costs. Canada,
France and the Netherlands
all have their strongest results in this sector.
Results for the corporate services sector are driven primarily
by labor costs for entry-level workers, which vary most significantly
by country. The United States
achieves its best ranking in this sector.
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