There are a LOT of disadvantages to building a factory in China to supply a market in, say, North America. Just about the only ADVANTAGE is cheap labor, so that is your reason.
True, labor is cheap in a lot of places, including India and Africa. But for a company to choose to build a plant in some developing country, they must have assurance that there is an adequate supply or infrastructure of labor, electricity, telecommunications, transportation, financial infrastructure, government cooperation, etc. China was way ahead of India in these traits, while Africa of course is a hopeless disaster, as it always will be.
So China gives you cheap labor as an advantage, AND adequate industrial infrastructure to minimize the disadvantages.
Additionally, as the most populous country, China has long been seen as a great potential consumer market someday. So, many companies are eager to get a toehold in China and be ready when the people become rich enough to buy things. China has naturally leveraged this potential to encourage those companies to build operations in the country.
2007-02-01 17:23:34
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answer #1
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answered by KevinStud99 6
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Because, Chinese are prepared to work like an assembly line. Workers who are preparing the goods are not aware about what they are producing and where it is going to be sold.
And another thing is piracy. They are biggest in volume at piracy market. Due to that they don't need to invest money or R&D for that product. Hence final cost of manufacturing the product becomes so cheaper that what ever you want you can get more cheaper if it is haiving tag of "Made In China".
But in other way, they are loosing the trust also. No one can take the guarantee of the chinese product's life.
2007-02-01 17:17:57
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answer #2
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answered by Ajeet S 5
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China's low wages are artificially low. Cheap foreign contract labor, slave labor and illegal currency manipulation create an artificial trade barrier to goods from the rest of the world being imported into China. Chinese companies ignore worker health and safety, pollution regulations, and avoid paying license fees by stealing intellectual property and ignoring copyright laws. The Chinese government also allows foreign companies the same unfair trade advantages when they outsource production to China. In most cases it's a bad deal for the local people, as their own government allows foreign companies to avoid paying union wages, ignore health and safety regualtions, and to export their pollution to China. In addition to this, many companies are government owned, or heavily subsidized by the government. In a truly free market, it makes no sense that a nation as poor as the Dominican Republic, to name just one, has higher labor costs than China. China now dominates the world market, but China's wealth and dominance of world exports is a fraud. China cheats: their rise has been achieved on the basis of unfair competition.
2016-03-29 00:58:51
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answer #3
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answered by ? 4
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China because of the volumes it produces is one of the lowest cost producers in the world. Manpower costs are low in relation to international competition and they have set up large capacities to achieve economies of scale. their quality levels is bound to improve over time, as of now it seems their value add is lower relative to say japan.
2007-02-01 16:11:23
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answer #4
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answered by Anonymous
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Cheaper
2007-02-01 15:49:44
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answer #5
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answered by Dave ! 3
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Chrome plated zinc alloy die casted motorcycle license plate
2014-09-02 19:45:34
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answer #6
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answered by Ricky 1
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they are the most productive state in the world.
2007-02-01 15:53:07
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answer #7
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answered by rulethisworldman 2
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mabey cuz theres lots of workers to make the stuff
2007-02-01 18:46:36
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answer #8
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answered by Anonymous
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Cheaper labor, cheaper products, better work ethic.
2007-02-01 15:50:13
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answer #9
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answered by mr_tasty_phlegm 4
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free electricity by government
2007-02-01 16:59:50
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answer #10
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answered by Anonymous
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