China Article- Microeconomics

Brief Overview

There is worry that there is too much investment in China. The concern is that companies give too much power to China in manufacturing. Economists believe that companies should diversify their company’s manufacturing to other countries to avoid control.

Positive Statements

  • Its wage rates are a third of Mexico’s and Hungary’s, and 5% of those in the U.S. or Japan
  • U.S. companies are shifting manufacturing from Malaysia, Thailand, Indonesia, and even Mexico to China
  • Its revenues have grown from $100 million in 1993 to an estimated $14 billion today

Normative Statements

  • No one would say China dominates manufacturing–yet
  • It would be better if their manufacturing facilities were more geographically dispersed

If I missed any, let me know!


Leave a comment

Filed under Microeconomics

Empty here... Leave your remarks!

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s