Question

In: Operations Management

How has China corrupted manufacturing in the United Sates?

How has China corrupted manufacturing in the United Sates?

Solutions

Expert Solution

China has become the manufacturing hub of the world and almost every part of the machine, equipment, raw material, and so on are either manufactured in China or the raw material for the various products are supplied by China to all over the world. This huge production dependency is earned by China on the basis of its cheap production and labor along with the capability of economies of scale.

Due to lower production cost and higher economies of scale and greater profitability, most of the manufacturing and production has shifted from the USA to China. The Chinese government also facilitates a number of incentives and other benefits such as a lower tariff, low cost of land, and other government support to attract the producers and manufacturers from all over the world. All this has really hampered the production possibility in the USA where the cost of production is relatively higher than in China.


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