Businesses that want to thrive in a competitive market economy need to control their expenses. This means they have to keep their production costs as low as possible, in order to be able to be competitive in terms of prices. If your products are more expensive than the ones of your competitors at equal quality levels, consumers aren’t going to buy from you. However, the raw materials prices are the same for everybody, so where could you possibly cut some expenses from?
The work force is one of the elements that make the price of a product or service. The cheaper you can have work done for you, the less expensive your products are going to be. Nonetheless, the minimum wage imposed by the state makes it impossible to hire people and pay them less than this amount. This is why most big manufacturers of smartphones, tablets and even cars moved their production facilities in very cheap countries in Asia and Europe.
Europe is a good option, but business owners need to be very careful, as each country has its own laws and its minimum imposed wages. Like everywhere else in the world, you aren’t allowed to pay your employees less than that. Countries like Germany, France or Netherlands are out of the question, as they are quite expensive, so their citizens earn more than the average. Ideally, you should investigate Eastern Europe, as those countries have the lowest GDP and the cheapest work force. Countries like Bulgaria, Moldavia, Serbia and Romania can be interesting, although they are more expensive than China, Thailand or India. Nonetheless, it might be better for a business to have its production centers in Europe, as there are some economic advantages you have to take into consideration when you develop your expansion plans. It might be more profitable to hire cheap work force from Europe rather than use the even cheaper workers in Asia.
If you want to find the cheapest work force in Europe, you need to make a comparison between all Eastern countries. If you want, you can add some others on your list. Greece, Italy, Spain or Hungary could be viable alternatives, provided that you avoid capitals and other big cities where the cost of living is higher than in the countryside. You have to go to less developed regions if you want to find truly cheap workers.