Question

In: Economics

the cons of manufacturing and doing business in china?

the cons of manufacturing and doing business in china?

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Expert Solution

China is considered as one of the world's biggest manufacturing hub and one of the top choices for the world's best companies such as Apple, to manufacture their products.China is a huge country with many ports and it becomes easier to transport products.China provides low cost of production as it has a huge labor force and also a vast market to sell the products to which makes it very lucrative but, it also has some disadvantages which are as follows:

Language Barrier- while china provides a chance to foreign companies to manufacture their product, it's a bug drawback to learn their language and communicate with them as they are very much rooted in their own language and their business culture is very different from western culture and they take pride in their language so, communication is a big challenge.

Social Stigma and quality- it means that often, that there is a stigma attached with the maufacture of products made in china and people think that the products made there are not good and not upto the standards as china is associated with low cost so there must be some type of substandard technique and inputs used to manufacture a product. This may be not true as we see almost all top brands manufacture their products in china.

Unstable International Relations- As we are seeing currently that US and China are at trade war which will affect the whole world economy as these unstable relations will make both countries impose tariffs, reduce trade which will make other countries postion very difficult as both of them will likely make a move on other countries to join their side.


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