China's large and growing economy has global operators salivating to participate. Many companies want to locate facilities in China. However, many issues remain--some of which may temper operating managers' optimism. Refer to this article in The Economist describing economic growth in China and China's effect on the global economy.
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Answer the following questions:
1) Historically it has been popular to outsource manufacturing to China because it was inexpensive to do so. Is this still the case? What factors in particular are driving production costs in China?
2) Which provincial areas of China have developed reputations as strong manufacturers? What helps explain the success of these provinces (compared to other provinces in China) in developing manufacturing competence?
Answer the following questions:
1) Historically it has been popular to outsource manufacturing to China because it was inexpensive to do so. Is this still the case? What factors in particular are driving production costs in China?
2) Which provincial areas of China have developed reputations as strong manufacturers? What helps explain the success of these provinces (compared to other provinces in China) in developing manufacturing competence?
CLICK HERE to get this paper!!
3) Are rising labor costs in China to be expected? Explain your answer.
4) Why are many operators hesitant to move business away from China despite rising costs? How does our concept of 'lock in' apply?
5) Ultimately, do you think that cost trends in China are a net positive or net negative for the US? Explain
Submit your answers in a memo format, although you may answer these questions as they are numbered. One page maximum!
3) Are rising labor costs in China to be expected? Explain your answer.
4) Why are many operators hesitant to move business away from China despite rising costs? How does our concept of 'lock in' apply?
5) Ultimately, do you think that cost trends in China are a net positive or net negative for the US? Explain
Submit your answers in a memo format, although you may answer these questions as they are numbered. One page maximum!
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