Why would a country continue to import goods from overseas when its own unemployment is on the up, and rising on a daily basis? The UK unemployment figures in March 2009 predicted 3 million out of work by the end of the year. Local UK suppliers of goods and services are often let down by O.E.M. (Original Equipment Manufacturers) companies sourcing their raw materials from overseas or, indeed moving their entire manufacturing operations to countries like China.

As the World's largest exporter, China had, for decades, been associated with what some might have called 'cheap and tacky' goods; plastic toys, Christmas Cracker gifts, and imitation products. This is now no longer the case. China, like other world economies, has had to develop and grow its manufacturing reputation to overcome the stigma of the past and improve its place on the World trade stage. Now, due to stringent quality control procedures in place, and compliance to many British and European Standards, the quality of goods arriving from China can be expected to be high.

So why do UK companies outsource services overseas? Why not continue to source 'locally'? Go into any UK supermarket chain and they will be promoting the fact that they like to source their goods locally, like fresh fruit, vegetables and meat. Their customers will be pleased to know that by buying these goods, they are helping to support the local economy. So, you might ask, why not adopt this attitude for all their stock? Perhaps one way to answer this is to ask, how many UK consumers stick to one shop? They don't. They shop around for the best prices and quality - even going to different towns or cities for their bargains. The same will be true for companies when they are looking to source their raw materials and components, especially if the company is part of a global operation. Employees within a 'local' company might be quite put out when they hear that some of their colleagues may be losing their job, or being made redundant because the work they do can be sourced cheaper elsewhere. We hear all the time about Call-Centres transferring overseas where the total cost of the operation is a fraction of that in the UK.

As the Credit Crunch takes a grip in the UK, companies are cutting production hours with many of their employees having to accept permanent pay cuts in order to help retain their jobs.The factories in China are also showing the effects of the global credit crunch by making mass redundancies and, in many cases, closing altogether. Will this mean, then, that in time, UK-based companies will begin to bring their manufacturing back into the UK thus returning the, soon to be, 3 million unemployed back into full-time employment, or will the companies simply shift their manufacturing to another overseas location?