Manufacuring
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- Category: Other
- Date Submitted: 02/21/2015 06:52 PM
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2.There are some possible advantages for U.S. firms to manufacture inside the country.
* Facilitates solve the local employment in labor market in U.S.A
* Enhances the domestic competitiveness, ability to turn its local natural resources, skilled labor, and infrastructure into a competitive advantage
* Increases the tax revenue, contributes to government in U.S.A
* Promotes the innovation, reduces labor costs.
* For example, Companies can now use even lower-cost American machines advances in automation. Robots can be used in manufacture in U.S. firms Instead of hiring low-cost Chinese workers.
* The ability to meet customers’ needs better and more quickly if production is nearby
* protects intellectual property of U.S.A
* Not only speeds up the production of customized productions and services, it also helps with the standard stuff.
* Improves the efficiency and saves the delivery times
* There are no political risk costs, Do not need to apply for additional financing
* Do not need to deal with special licenses and regulations
* Good connection with manufacturer in U.S.A
On the other hand, there are some other possible disadvantages for U.S firms to manufacture in China.
* May need to wait for long-term gains
* Some unexpected “cycle or delivery time” problems and quality issues due to offshoring.
* It is possible to modify the products’ standard during the process in China.
Not easy to control quality.
* Need to obey The Chinese government rules.
For example, The Chinese government restricts importation of some equipment.
Or, Policies in China constitute unfair trade practices
* Apply for additional financing
* Deal with special licenses and regulations
* Intellectual property risks
For example, employees in China might share some information with your competition while still working for you or after they quit the company or they open their own company to make the same stuff....
* Facilitates solve the local employment in labor market in U.S.A
* Enhances the domestic competitiveness, ability to turn its local natural resources, skilled labor, and infrastructure into a competitive advantage
* Increases the tax revenue, contributes to government in U.S.A
* Promotes the innovation, reduces labor costs.
* For example, Companies can now use even lower-cost American machines advances in automation. Robots can be used in manufacture in U.S. firms Instead of hiring low-cost Chinese workers.
* The ability to meet customers’ needs better and more quickly if production is nearby
* protects intellectual property of U.S.A
* Not only speeds up the production of customized productions and services, it also helps with the standard stuff.
* Improves the efficiency and saves the delivery times
* There are no political risk costs, Do not need to apply for additional financing
* Do not need to deal with special licenses and regulations
* Good connection with manufacturer in U.S.A
On the other hand, there are some other possible disadvantages for U.S firms to manufacture in China.
* May need to wait for long-term gains
* Some unexpected “cycle or delivery time” problems and quality issues due to offshoring.
* It is possible to modify the products’ standard during the process in China.
Not easy to control quality.
* Need to obey The Chinese government rules.
For example, The Chinese government restricts importation of some equipment.
Or, Policies in China constitute unfair trade practices
* Apply for additional financing
* Deal with special licenses and regulations
* Intellectual property risks
For example, employees in China might share some information with your competition while still working for you or after they quit the company or they open their own company to make the same stuff....