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Management 13th Edition by John Schermerhorn,Daniel Bachrach
Edition 13ISBN: 978-1118841518Management 13th Edition by John Schermerhorn,Daniel Bachrach
Edition 13ISBN: 978-1118841518 Exercise 8
THINK BEFORE YOU ACT
"It's probably 30 percent cheaper to manufacture in China. But factor in shipping and all the other B.S. that you have to endure."
Reshoring Offers Alternative to China Manufacturing
![THINK BEFORE YOU ACT It's probably 30 percent cheaper to manufacture in China. But factor in shipping and all the other B.S. that you have to endure. Reshoring Offers Alternative to China Manufacturing O ver the past 15 to 20 years, if you were a manufacturer you went to China, at least as a first stop on your global scouting trip. However, things have changed. A San Diego-based CEO says: Now people are trying to come back. Why so LightSaver Technologies tried for two years to get things done in China. Now its work is back in California. CEO Jerry Anderson says China has lost its allure: It's probably 30 percent cheaper to manufacture in China. But factor in shipping and all the other B.S. that you have to endure. Transportation costs and time are up for goods moved from China to the United States and other world markets. Labor costs are up; rising about 20% a year. Business risks in China, if not up, are at least more visible. Theft of intellectual property is a problem. One small manufacturer says: They're infamous over there for knocking [products] off. Another complains: Now prices are escalating, quality is dropping, and deliveries are being delayed. YOUR TAKE The Economist says China is still a manufacturing power. With super-efficient plants and supply chain infrastructure it remains a bargain for labor costs. So, are you on the reshoring side or the offshoring side of the issue What facts are available to support or undermine your position Try to think of this issue from a consumer's perspective. If you can buy a child's toy made in China for $8, would you be willing to pay $12 so that it could be labeled Made in America Should more of America's businesses, large and small, say, Not worth the trouble! when Chinese manufacturers come calling with offers](https://storage.examlex.com/SM2871/11eb69f5_e2af_5fca_a881_a91ef4dd690e_SM2871_00.jpg)
O ver the past 15 to 20 years, if you were a manufacturer you went to China, at least as a first stop on your global scouting trip. However, things have changed. A San Diego-based CEO says: "Now people are trying to come back."
Why so
LightSaver Technologies tried for two years to get things done in China. Now its work is back in California. CEO Jerry Anderson says China has lost its allure: "It's probably 30 percent cheaper to manufacture in China. But factor in shipping and all the other B.S. that you have to endure." Transportation costs and time are up for goods moved from China to the United States and other world markets. Labor costs are up; rising about 20% a year. Business risks in China, if not up, are at least more visible. Theft of intellectual property is a problem. One small manufacturer says: "They're infamous over there for knocking [products] off." Another complains: "Now prices are escalating, quality is dropping, and deliveries are being delayed."
YOUR TAKE
The Economist says China "is still a manufacturing power." With super-efficient plants and supply chain infrastructure it remains a bargain for labor costs. So, are you on the reshoring side or the offshoring side of the issue What facts are available to support or undermine your position Try to think of this issue from a consumer's perspective. If you can buy a child's toy made in China for $8, would you be willing to pay $12 so that it could be labeled "Made in America" Should more of America's businesses, large and small, say, "Not worth the trouble!" when Chinese manufacturers come calling with offers
"It's probably 30 percent cheaper to manufacture in China. But factor in shipping and all the other B.S. that you have to endure."
Reshoring Offers Alternative to China Manufacturing
O ver the past 15 to 20 years, if you were a manufacturer you went to China, at least as a first stop on your global scouting trip. However, things have changed. A San Diego-based CEO says: "Now people are trying to come back."
Why so
LightSaver Technologies tried for two years to get things done in China. Now its work is back in California. CEO Jerry Anderson says China has lost its allure: "It's probably 30 percent cheaper to manufacture in China. But factor in shipping and all the other B.S. that you have to endure." Transportation costs and time are up for goods moved from China to the United States and other world markets. Labor costs are up; rising about 20% a year. Business risks in China, if not up, are at least more visible. Theft of intellectual property is a problem. One small manufacturer says: "They're infamous over there for knocking [products] off." Another complains: "Now prices are escalating, quality is dropping, and deliveries are being delayed."
YOUR TAKE
The Economist says China "is still a manufacturing power." With super-efficient plants and supply chain infrastructure it remains a bargain for labor costs. So, are you on the reshoring side or the offshoring side of the issue What facts are available to support or undermine your position Try to think of this issue from a consumer's perspective. If you can buy a child's toy made in China for $8, would you be willing to pay $12 so that it could be labeled "Made in America" Should more of America's businesses, large and small, say, "Not worth the trouble!" when Chinese manufacturers come calling with offers
Explanation
Verified
Verified
Reshoring basically refers to the practi...
Management 13th Edition by John Schermerhorn,Daniel Bachrach
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