I find that many of the items made from china re cheep compared to India. Even the products available in foreign shops also have low price than ours. There may be small quality variation;In this case why cannot we concentrate on goods in which webecome monoply.??
2007-03-21 00:39:12 · 9 answers · asked by ar.samy 6 in Business & Finance ➔ Other - Business & Finance
Although labor in China's industrialized cities on the Eastern coast may cost more (China's GDP (PPP): $7600) than it does on average in India (India's GDP(PPP): $3700) and other countries, Chinese industries are aided by the fact that:
*Most of their suppliers are nearby, it's like how in Ohio there's a ton of car-parts related industry built around the Honda plants. It's just less of a hassle (transportation, duties, language barriers, etc) to get the parts and supplies you need, when your suppliers are in the same province as your factory.
*Transportation is reliable, relatively fast, and expanding. You don't want to have your products stuck in a port or a railway station, because it's over capacity or inefficient. In India, from what I've heard, the airports are overcrowded as are the railways, and the bureaucracy of India slows down progress, while in China progress moves forward, at the expense of some of the people to help the country overall.
*A large part of the work force is already familiar with how to work in a factory.
*The power grid is pretty reliable. This is a big thing, in India most IT firms have to get their own generators because of the spotty power grid. You don't want to have to do that with a factory, you need a reliable source of power and water. In a lot of developing countries, the power grids are reliably unreliable.
*Location a lot of the factories in China are owned by Koreans, Taiwanese, Hong Kongers, and Japanese, and it's easier to move their factories from their own countries a relatively short distance to China.
2007-03-23 15:28:12 · answer #1 · answered by Shnugicon 2 · 0⤊ 0⤋
Because China finances America's government. We have to overlook fair trade, democratic government and workplace regulations in order to give away tax cuts. If India would suspend social spendinig and buy American bonds, Walmart would begin to buy in bulk from Indian suppliers. Walmart is coming to India. Will they sell India products or Chinese? That will be the test.
2007-03-21 00:52:37 · answer #2 · answered by Anonymous · 0⤊ 1⤋
china being the most populated country in the world has a huge work force rather it has huge manpower so they are able to produce large amounts of goods at cheap rate and sell them in other nations.overall the quality fo this products is objectionable. it is cheap but the quality level is also down.
2007-03-21 00:52:15 · answer #3 · answered by Suraj 3 · 1⤊ 0⤋
The over-head charges according to cost-accounting system including profit may be lesser in china.
2007-03-21 03:49:02 · answer #4 · answered by Mani Mozhi V 1 · 0⤊ 0⤋
Yes, chinese people are very skilled and manpower is cheap, cheaper than India. It is a good idea that we should focus on goods in which we get monopoly, but we should first identify these goods and evaluate the profitability.
2007-03-21 00:44:36 · answer #5 · answered by wizard of the East 7 · 2⤊ 0⤋
The correct reason is 'Scale of Production'. Economy of scale decides the cost of a good.
2007-03-21 02:06:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
China is a communist economy and everything is Govt controlled. That is the biggest reason.
2007-03-21 11:44:02 · answer #7 · answered by Hungry soul 2 · 1⤊ 1⤋
Because they are "Made in China".
so "cheep".
2007-03-21 17:35:14 · answer #8 · answered by kzpc 2 · 0⤊ 0⤋
chinese products are cheap because labour is cheap,inflation is low and exploitation is less.
2007-03-21 06:05:28 · answer #9 · answered by kollarajamohan 2 · 1⤊ 0⤋