U.S. Manufacturing No More Expensive Than Outsourcing To China By 2015: Study - 4 views
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Danyelle Allen on 07 Apr 14This directly relates to site factors because in Shanghai, the land is limited and expensive due to it being a dense urban region. It is cheaper for businesses to establish factories in rural and suburban areas with proximity to junctions and highways. Also, businesses prefer to build horizontally, therefore needing more land area.
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As the cost of manufacturing in China has risen, so have reports of companies pulling their plants out of the country to find cheaper locations.
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manufacturing in China has risen, so have reports of companies pulling their plants out of the country to find
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Even with manufacturing costs rising in China, Prince Industries has benefited from expanding its operations outside Chicago to include a plant in China
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The rising value of the RMB was expected and has made it more costly to ship goods built in China around the world.
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This connects to Kelly Gallick's current event on the survival of U.S. manufacturing as businesses compete with low-cost labor in LDCs. This statement portrays that keeping industries in the U.S. and not outsourcing to China would be beneficial. The manufacturing costs would be the same, while the U.S. provides proximity to markets, which reduces transportation costs.
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Outsourcing links to the geography theme of globalization, for it increase involvement with transnational industries and corporations. In addition, outsourcing causes businesses to become known in the region where products are being manufactured, initiating a closer-linked globe. Globalization promotes the cooperation with other countries to become successful in the world markets.
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