Question

Why China is a good choice to start manufacturing company there? What are the pros and cons?

Why caymen islands is the best place for the headquarters for any business?

Answer 1

Reasons for manufacturing in China :-

1. It is known to all that Chinese market is famous for it's low cost products. Companies can manufacture its products at a very low costs which results in the high profit.
2. China can provide better service to the manufacturer compared to that of domestic ones.
3. The capacity of Chinese factories is much more than compared to others, which lead to provide high no. of outcomes.
4. China can be able to produce large no. of items at a very less time.
5. No other manufacturers does better duplication than that of Chinese manufacturers.

By keeping all the pros points in mind it can be said that a businessman can no doubt start its business in China. But in that case it has some disadvantage also.

Cons of manufacturing in China :-

1. It becomes very difficult for the manufacturers to find a factory for manufacturing.
2. Language can be a barrier for the manufacturers.
3. It is true that Chinese products has some stigma. People may give negative opinion on the products.
4. The cost of shipping can be high when shipping from China to U.S.
5. Due to the high production rate, level of quality can become lower.

Hope this helps :)