Outward Processing Trade

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As Outward Processing Trade (OPT) refers to a specific type of production in which a company precursors semifinished produced supplies abroad and finished there produce leaves. It then re-imports the finished products to sell on the domestic market . In this way, labor-intensive production steps can be relocated to countries where labor costs are low, while development, marketing and other work steps remain in the company's home country .

For example , clothing sold in Germany is often produced on an OPT basis in Eastern Europe or Turkey after the fibers or fabrics have been exported there.