concerns about china's manufacturing economy?

Question

china's economy is improving. so why doesn't america create a manufacturing economy like china? instead of using china to make shoes, toys, and
general merchandise, just have americans make it. or better yet, hire people from mexico on a special visa.

Answer 1

that is why there is so much outsourcing...cost of labor!!! china is actually not the lowest paid though, but they do have specialties (like working with certain fabrics.) Also, their gov't has made it easy for international companies to set up manufacturing plants there - gives them all sorts of tax breaks and such.

Answer 2

Unfortunately it's all about taxes and profits. Businesses in China get preferential treatment regarding taxes and regulations. What's left out of this equation is the negative externalities such as pollution, the start-up costs, etc. The whole process is structured into neat little enterprise zones that isolate the firm from the outside world. Very similar to the deal with oil.

As consumers, we have more power than we think. We should buy American made products if we want. The basic idea behind outsourcing is that American firms transfer their production to other countries and then bring the same product back into the American market. We are paying a little less for the same stuff with the difference going into the pockets of the American firm. Sounds like a rip-off to me.

Answer 3

We've been there and done that. Americana's will not work for less than a living wage. China's manufacturing plants are new and updated and we are still using old outdated sites. We have enjoyed this means of prosperity long enough it's time to think of something else. Bio and alternative fuels come to mind. Maybe we could be the next big energy supplier. Whatever it is it's time for change.

Answer 4

You have no idea what you're talking about, do you?

China is losing manufactiring jobs about twice as fast as the U.S. This job loss is a worldwide phenomenon and has nothing to do with trade and everything to do with productivity improvement. Manufacturing is relatively easy to mechanize and automate, whereas services are very difficult in that regard. So jobs migrate away from manufacturing into services.

A very similar thing happened to agricultire. 100 years ago, about 40% of the U.S. workforce was employed in agriculture. Today, it's only 3%...

Answer 5

Too many people talk about the Chinese economic system and fail to keep it in context. For example, the growth in the US economy in the past 36 months, (just the 'gowth') was greater than the entire Chinese economy. Think about that.

Another one: the economy of California is greater than that of China.

People talk about the growth of the Chinese economy in terms of a percentage but, 10% of a million is much less than 5% of a trillion.

You need to keep it in perspective. The Chinese are doing well but they are not in a position to threaten the US economically.

Answer 6

China"s monetary gadget isn't in declining , the GDP remains increasing,notwithstanding the shape cost is declining ,and this progression has almost not something to do with 'IMF cuts 2013 China progression forecast',that's thinking the very incontrovertible reality that there are one of those structural issues,a twin of the unbalance b/w the west and the east and corruption and the unsustainable way of progression ,and so on

Answer 7

America can get the advantage by investing, and setting their manufacturing concerns, and production units in PAKISTAN.

REASONS
>Fastly growing economy
>Tax Free zone for foreign investors
>Tax exemptions for investors
>Government and Public supports
>Low Labour cost
>High rate of returns
>Commercial Hub for central Asia and Middle East
>Cheap Raw Material
>Qualified and Skilled Human Resource
>Great Infrastucture
>Favourable Govermental Policies for investor
>Local Market of 1.5 million people


Or America can import Cheap But Qualified and Skilled Labour from Pakistan

Consider it

Answer 8

You need some serious economy lessons dude!
how many americans or even mexicans would work for $1 a hour?

If i do not recall wrong the cost of Chinese factory labor is 64 cents an hour.

Answer 9

If Nike paid an American 10 bucks an hour to make shoes, they couldn't sell them for $120 and make $100 profit like they can when the Chinese are paid $1 an hour.

Answer 10

Pumping money into a communist country and ultimately its treasury is immoral.

As for as the economics of the matter, has anyone noticed prices dropping as a result of all the out sourcing. No - only the investor class has profited, and in turn funded further outsourcing with their re-investments. It is truly the issue of the day and until globalization of trade and finance is defeated, we are defeated.