With the potential of cheaper material in China compared to the United States, do you feel...

With the potential of cheaper material in China compared to the United States, do you feel that the quality of the final product may be lessened?

Expert Solution

ANS

Yes, as China is providing cheaper material to the globe then due to low prices many big firms prefer to buy the material from China as it would lead to cheaper finished goods and cheaper production costs. Due to cheaper production costs the profitability of the firm increases and cheaper finished goods attracts more consumers. This leads the firms to use more cheaper material from China and this leads to low quality of final goods as Chinese goods have less reliability and due to which the quality of goods decreases.

Rahul Sunny answered 2 years ago

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